Companies with smaller profit margins must create a larger following of loyal customers because they need to rely on the quantity of customers, not the markup, for their profits. Caffe Umbria will charge $2.00 per 16oz cup of coffee to keep it below the national average cost while not compromising quality of the product. Packaging needs to stay small for purchase in store and online for home brewers so that the customer still gets the same fresh taste at home as they do in the cafes and extra care should be taken to ensure the freshness of the coffee, safety of the packaging, and the shrink in the packaging process. The lower the costs in shrink of packaging and
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.
David starts by teasing these overweight individuals that are bring a lawsuit against McDonalds, but then later admits that he used to be overweight as a child and was able to change his life around. He made a point to show health concerns with being obese and eating fast food regularly, such as type two diabetes which has risen about twenty-five percent since 1994. This raise in diabetes also requires much funding for the United States to spend to try to find a cure. David explains how there is very few alternatives for the youth of America because those health alternatives are more expensive and harder to find. False advertising is also another unpleasant practice that fast food companies use to lure in costumers.
There is currently one major competitor in the specialty foods business is the chain Whole Foods. The foot print of Whole Foods is so large and has a larger market share than Kudler, they would be able to cut into Kudler’s competitive advantage of being the only specialty food store within their operating locations. There are more super chains such as Wal-Mart are starting to carry organic foods at their notoriously low prices. Wal-Mart is not only starting to offer organic items, but they are saving money by doing it. “By distributing locally, [Wal-Mart] said it saved 112,000 gallons of diesel and total freight expense of more than $1.4 million” (Hoffman, 2008, p. 1).
Pepsi Co. keeps improving its products and make it more healthier and suitable for the customers. It has decreased the usage of sugar, fat and other unhealthy ingredients to make the products. These food items make not be the healthiest food out there, but it does satisfy the customer’s need with easy and is very convenient. The shareholders are also satisfied. Out of the total revenue, $10 billion comes from the healthy food section.
And the customer will assume since the other coffee maker was on sale and such a low price that this coffee maker must be a good deal as well and chances are buy it. But again looking at the prices end of this, food is cheaper at Wal-mart. You can buy the name brand name products or you can buy the greater value products which are Wal-mart's brand products for even cheaper. Wal-mart also has a convince factor, I find myself going to Wal-mart for say car speakers and I end up buy speakers, movies, and food. The fact that it is all in one building
Kudler Fine Foods Shopping the World for the Finest Food Profitability Ratios As you requested I have provided an entry level financial analysis for Kudler Fine Foods. In my findings I have discovered the profitability ratios are 4.03 times. The ratio seems a little low and there could be some changes to boost the probability and to generate more revenue for the future. Kudler return on assets is 25% which is decent because they are making more money on fewer investments. Their profit margin is 6.2% and the common stockholder’s equity is 90.7%.
I agree with Zinczenko on his critical viewpoint on how he looks at the fast food industry. Fast food is part of the blame because most of them are not healthy and are bad for consumers. The calories of a Big Mac, medium fry, and a medium Coke are almost equivalent to the daily intake of these industry’s consumers. Zinczenko uses the analogy of a simple salad we would assume is healthy. Our fast food industry needs to provide these nutritional facts in easy reach for their customers.
He continues by saying that people also may say that fast food is cheaper when measured by the calorie but when half of the people in this country consume too many calories rather than too few, measuring food’s cost by the calorie makes no sense. Bittman clearly states that the cost of fast foods aren’t as cheap as we have all tricked ourselves into thinking and that the obvious choice should be home cooked meals. As well as using hard evidence, Bittman also manages to convince his readers of his credibility because of his background and knowledge of food. Appearing on NBC’s The Today Show, NPR’s All Things Considered and the author of three books relating to food, Bittman is multifaceted (Beyond Print 1). Bittman makes it clear a few times during the article that he likes to make home cooked meals and
The food companies use these additives in their product to enhance the flavor of their products, making them more desirable. These scientists also used this technology to produce coloring additives to enhance the color of the food, using research that showed that looks were as important to consumers as taste. According to Schlosser, “About ninety percent of money that Americans spend on food is used to buy processed foods.” The American flavor industry produces roughly ten thousand new processed food products each year, with annual revenues of $1.4 billion. While most of the new products will fail, the ones that survive have distinct flavors created by a “flavorist” in a