The firm needs more attention to a solid marketing effort including a website design and website launch and it needs to find alternate means of financing beyond its current sources. In 2003 and 2004, more than 52% and 60% of the customers felt that they paid more for the merchandise that the merchandise was worth. Kudler Fine Foods will employee a generic strategy of focus. Kudler Fine Foods will serve their niche market that is the gourmet chef and people that appreciate and are willing to pay for high quality, specialty, organic and locally grown foods. “A firm pursuing a focus strategy is willing to service isolated geographic areas; to satisfy the needs of customers with special financing, inventory, or servicing problems; or to tailor the product to the somewhat unique demands of the small- to medium-sized customer” (Pearce and Robinson, 2009, p.205).
Critical Issues Cost Structure & Profit – There is a restaurant style cost structure of a 30/30/30, leaving only 10% for profit. Being manufacturing and a highly leveraged company they have a large amount of fixed costs and their cost structure does not reflect this. Expansion – There is inadequate capital to expand Monforte and securing financing from banks is unlikely due to Monforte’s low profit margins of 10% as well as her unfavourable financial ratios, specifically her acid test ratio of 0.9. Focus – The focus of the organization is blurred. There is a need for expansion; however, there is also a need to meet the requirements put in place about locally grown and produced products as well as high wages for workers.
Just as the other marketing mix components there are questions that must be answered in order to determine pricing for a product. One question is what Kudler’s price should be in comparison to its competitors. Kudler Fine Foods has to decide whether they should be lower, higher, provide more bang for the buck or offer exclusive services at expensive prices. The standard that Kudler Fine Foods has for its other promotions is for them to be self-funding. I think it is essential that the catering service also have that standard.
Kudler Fine Foods Vision Statement According to Lucas (1998), a vision statement must be the driving force of a company. The proposed new vision statement for KFF is as follows: Kudler Fine Foods will provide fresh, gourmet foods and fine wines at reasonable prices to discriminating customers. Kudler Fine Foods Values Statement The company values statement should impose a set of fundamental and strategically sound beliefs on a broad group of people, according to Lencioni (2002). The proposed new values statement for KFF is as follows: Kudler Fine Foods will only use the finest organic ingredients purchased from local farmers whenever possible. We will use only the freshest products without unnecessary additives in our products.
Limiting one’s marketing to one specific demographic can lead to missed opportunities in other markets. To be truly successful Kudler Fine Foods may consider expanding its marketing efforts to middle class and upper-middle class clientele. Considering the sheer size of the group considered the middle class, marketing efforts could pursue this group and expect there to be a sizable number of individuals who would benefit from a specialty food stores. Product sales would most likely be the most prominent form of income from the middle class
Concern for survival/growth/profits; this is specifically addressed, Whole Foods understands that in order to grow they must have a profit. As they stated the profit is their savings and a savings is what is needed in order to meet future needs. This is their “seed money” for future expansion. 6. Philosophy; is specifically addressed, Whole Foods core values are deeply embedded within the system which prevents them from becoming situation or person dependent.
The cash and short-term investments increased significantly from 2011 at 746.28 million to 1.32 billion in 2012. The short-term investment in particular, grew to 1.13 billion in 2012 from 442.32 million in 2011. WFM sped up their growth by opening stores in underserved areas such as Detroit, Wichita, and Glen Mills in 2012, which explains the increase in property, plant and equipment assets to 2.19 billion. Currently, WFM has 404 locations in US, Canada, and UK. The steady rollout of new stores also explains the increase in fixed assets of land and improvements from 2013 to
BMGT 364 Business Management and Organization Theory October 19, 2014 Part 1: There are many similarities and differences between Whole Foods and Trader Joe’s mission statements. Although the mission statements are worded completely different from each other it is obvious that they are each trying to say the same thing in some manner. Whole Foods mission statement says “We are a mission-driven company that aims to set the standards of excellence for food retailers. We are building a business in which high standards permeate all aspects of our company. Quality is a state of mind at Whole Foods Market.” While Trader Joe’s mission states “Is to give to give our customers the best food and beverage values that they can find anywhere and to
Advertising is a large part of Target’s marketing management. The retail stores sell a large variety of high quality items at lower prices than the competitors, therefore, selling more products. Target’s marketing team is constantly re-evaluating the products sold to assure that their customers stay satisfied with the items that are in stock. To guarantee that customers stay completely satisfied, Target will special order items if requested by a customer. To continue to be the largest retail store, Target has to make sure that their prices are the lowest and that the products they sell meet all of the wants and needs of each customer.
Competitive environment for Colombo Independent shops: Colombo mainly distributed through independent shops in the early 1980’s. However, in the early 90’s, the emergence of franchise operations such as TCBY and Freshens put many of the independent shops out of business. This situation raised red flag for GMI, indicating that its sales would be damaged if shops could not survive from the competitive environment. In the late 90’s, Shops began to increase sales by product innovation and made their living from the soft-serve business. Impulse locations: The market changed as Foodservice operators added soft-serve yogurt to business in the early 90’s.