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).
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).
One of the marketing strategies that ensure the company of long-term profitability is the personal relationship built with the customer base. Customers will not have the same shopping experience with large grocery stores. If there are items that customers would like to have available in Kudler stores they are able to communicate that to management. Management can then relay the data to Kathy Kudler who will search the world for the best available items to satisfy the customer. People will not have the loyalty they get from Kudler at other grocery marts.
Besides, if chains closed every time they lost money, there would be a huge loss in just the opening and reopening phases of a business. Consumers of Company Q's have requested that the company provide more health oriented products. After years of requests, Company Q's stores have began to offer a limited variety of products that are better for its consumers. However, of all the viable options of products to carry, Company Q only retains high margin items, that is, items that have a higher profit margin. While it is a positive thing for the company to recognize it's community's need for better foods, keeping only expensive health foods is almost like monopolizing the consumer's health in exchange for
Kudler Fine Foods Problem Statement University of Phoenix MGT/251 Dr. Patrick E. Murray Kudler Fine Foods has the unique opportunity to dominate the organic fine foods market in California. While business is currently good at Kudler there are many weaknesses the company needs to address in order to remain profitable on a grand scale. Currently the weaknesses Kudler is experiencing are problems with perishable goods, high payroll; management has too many responsibilities, sales at Del Mar location, and geographic expansion limitations. There is no way to completely resolve the issues with perishable foods. Being a fine foods store that specializes in foods that do not use any type of preservatives there will always be a problem with waste.
Atmosphere Issues Name University of Phoenix As the new Mayor of Sparksville, the town was anticipating a change that could sustain the city. The best choice I went with made the economy thrive and successful it stated I was an ECO – Hero but my grade does not reflect that. The first one was the Distribution Company which was good but had some issues with the proposal, the proposal was straight forward yet not enough information to help Sparksville be a sustainable city. The proposal was to create jobs five hundred jobs for Sparksville citizens but that was all, the Distribution Company promised to do emissions testing a couple of times a year but that was not enough to make me want to vouch for the them to the Board. The Distribution Company felt that the government was to help Sparksville become a sustainable city.
Each team member will include one alternative and recommend a single strategy that Kudler Fine Foods may implement. The alternatives discussed will be (1) expansion by horizontal integration (2) expansion by adopting generic competitive strategies (3) expansion by product development (4) expansion by recruiting new management team, and (5) expansion by identifying a specific plan for new location. Expansion by Horizontal Integration To maintain and increase its competitive edge, an alternative strategy KFF will consider is to realize growth and increase productivity through horizontal integration. Horizontal integration will increase KFF’s economies of scale and scope, marketing power and reduce the cost of international trade when this opportunity arises (University of Phoenix, 2007). To increase its scale and scope, KFF will expand geographicaly first through acquiring similar stores so as to sell more of the same product.
Marketing Plan MKT550 V1 Lowes Foods to Go Marketing Plan Lowes Foods is a unique chain of supermarkets specializing in foods that are good for you. In business since 1954 the store offers exceptional quality and service. One attribute that sets them apart from other stores is their Food to Go program. Customers can place their grocery orders on-line by 3:00 p.m. and pick them up the same day at a convenient location. Lowes Foods will be expanding its territory into Oakland County, Michigan.
Each team member will include one alternative and recommend a single strategy that Kudler Fine Foods may implement. The alternatives discussed will be (1) expansion by horizontal integration (2) expansion by adopting generic competitive strategies (3) expansion by product development (4) expansion by recruiting new management team, and (5) expansion by identifying a specific plan for new location. Expansion by Horizontal Integration To maintain and increase its competitive edge, an alternative strategy KFF will consider is to realize growth and increase productivity through horizontal integration. Horizontal integration will increase KFF’s economies of scale and scope, marketing power and reduce the cost of international trade when this opportunity arises (University of Phoenix, 2007). To increase its scale and scope, KFF will expand geographicaly first through acquiring similar stores so as to sell more of the same product.
• Competitors like Marvel are wooing customers with low cost per click-through • Condition-specific websites like cholesterol.com has a better chance of converting a visitor to a customer. • Setting a price competitive to Marvel’s would drop MedNet’s revenue by 80% • Since advertisements are the only source of revenue, MedNet’s has to rethink their revenue generation strategy to sustain their business. • It is considered as a product problem because they may have to change the value proposition Note that technology is fragmenting the market and disrupting the business model What are the decision options? • Charging for the content, treating site visitors as patients. • Extend coverage of alternative health information • Develop and manage corporate websites What does he/she need to know to make a decision?