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.
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).
Whole Foods Market, one of Kudler Fine Foods biggest competitor, has over 43 locations in the United States, Canada, and the United Kingdom. As these current consumer demands continue to grow the trends will also help support Kudler’s mission of providing the finest epicurean products. With the increased competition from not only stores like Whole Foods Market, Kudler has to remain competitive with other entities that are able to offer similar product quality at affordable prices. Knowing what the competition is doing and forecasting their efforts will help Kudler remain competitive and two steps ahead of the competition by identifying trends, events, and other issues that may have an impact on the industry. Kudler should invest a significant amount of research on identifying the strengths and weaknesses of Whole Foods Market and how they can capitalize on those weaknesses.
The strengths of the company are beneficial for sustenance; however, the weaknesses could pose a threat to the company’s long-term viability and its desire to remain a leader in the region. The structure of Kudler is a monopolistic market structure because there are many stores offering similar products, but differentiated. If Kudler Fine Foods implements the recommendations, it can continue the substantial lead it has in the market as well as expand to become a nationally recognized
Kudler Fine Foods Virtual Organization Kudler Fine Foods (KFF) is an established business that survived the initial period successfully and grown by adding two additional stores. Because of owner’s prudent management the business presence in the market is solid, although other competitors represent a threat. Additionally the threat of handling perishable goods is also present, but competitors have the same issue plus KFF can compete with reasonable prices to make it attractive to customers (Kudler Fine Foods, 2012, p. 10). KFF needs to initiate marketing research analysis to pinpoint the areas of opportunity and improvement. In this analysis a secret shopper should be part of the research to visit stores around the three KFF establishments
Competition in the market place is one facet that drives the capitalistic system. Without competition a business would not have any checks and balances to control pricing to the consumer. Since businesses compete for consumers businesses must market its products and services so it will entice consumers to buy its products or services. If a business prices what it wants to sell too high consumers will likely go to a competitor instead. To be competitive businesses will have to research local competition and set prices as-well-as stock product that will compete with any other businesses in the area.
Kudler is a well established name in the gourmet food market, but Kathy and her marketing research team needs to use the best strategies they can to stay ahead of their competition and to provide items that they customers are in need of and that they want. Using public information is part of competitive intelligence it is legal and it helps a business identify the next move of the competitor as well what they are introducing new to the market. The competitive intelligence and analysis will let the organization determine marketing strategies and opportunities that they can take advantage of to make there business a
* Brill’s proposed organizational changes to create Eurobrand teams will be perceived as a direct challenge to the country manager’s local authority levels. * Concern about the effectiveness due to the team size (upwards of 12). Analysis: The market structures and taste differ to a large extend in different European countries. The wounds of the “Podcafe” and the frozen fruit juice line debacle are still fresh in the minds of Corporate in Kalamazoo. Lora Brill had an uphill task of balancing the company’s interests with the urge to become a market mover.
The brand managers do a great job of appealing to their target customers and knowing exactly what they want. However, this campaign also has a few weaknesses when it launched in Viet Nam market, other target customer include women and different age group can be uncomfortable, even be angry. In first stage when Axe launch, they have to cope with big competitors which exist long time ago in Viet Nam such as Nivea and Romano.With a suitable marketing, Axe now have a particular position in Viet Nam market. Background Information Unilever’s background - Unilever is the world’s third-largest multinational consumer goods company with wide range of product. Including: foods, beverages, cleaning agent and personal care products.
Q: What are the advantages and disadvantages of growth strategies pursued by Royal Ahold, Carrefour, and Wal-Mart? A: Ahold’s main strategy as said in case 9 as, “multilocal, multiformat, and multiformat,” employing new products, services, and store formats to make shopping for healthy and comparably priced food more convenient. They want to be perceived as a local company in all different cultures and demographics. They do not want to be seen as retail monster like Wal-Mart, as you can tell by the title of this case, “Royal Ahold: The biggest supermarket retailer you have never heard of.” Ahold advantages: * Keeping local names, helps prevent cultural shock. When acting in a global manor you reach over many different cultures.