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.
By implementing a frequent shopper program Kudler Fine Foods can do just that. By delivering customized incentives to its customers rather than discounted items Kudler Fine Foods will set themselves apart from other markets. Kudler Fine Foods can expect to see several benefits from establishing a frequent shopper program. The expected benefits from establishing the frequent shopper program will benefit both Kudler Fine Foods and its consumers. The consumers will benefit by obtaining the quality goods Kudler provides as well as customized promotions based on personal shopping patterns.
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.
This practice keeps these businesses in the oligopoly market structure. They must take into account the expected reaction of the other companies. Oligopoly market structure has no definitive plan in place; it is based on strategic planning. This means the company is ready to react to what a competitor may do. Target could have very well been in the monopolistic competition structure but did meet some of the structure points.
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
Sultan Molla MGMT-325 Thursday, December 15, 2011 Incentives Incentives are a major factor to consider when you are responsible for a business. Incentives can greatly affect an organization in many ways, and the type of organization determines what incentives are most suitable. These incentives are not standardized; they depend greatly on the region and location. For example each region has laws and benefits for businesses, so what might work for one company might not necessarily work for the other. These organizations make decisions based on the location that offers the best incentives for the business the organization engages in.
They will regular have special offers on within stores around the country also. Tesco’s sales promotions are the Clubcard points and school tokens. The Clubcard points try to make shopping better for their customers. This type of promotional technique attracts the customer who is looking for discounts and other types of saving options. The school tokens are a good sales promotion because to get this sales promotion you have to buy products from the store to a certain price.
This analysis gives a hypothesis of what the question is made of, to give an advantage to management but continues to not be an exact procedure for management. The procedure simply gives product management a guideline to go by. While it does not provide an answer to problems that occur, it does tend to give more questions than answer. Management must exercise caution in using this system, when making decision about how to operate or run each operation within the company. How would you use CVP analysis to determine the product mix within a retail outlet?
• Location of stores. • How close the store is to its customer base. • How close competitor stores are positioned. • Cost advantage over competitors, a non-unionized labor force could represent a cost advantage. • Implementing information technology in order to increase efficiency in operations and marketing aids.
However they would have notify customers of the use of the technology in their stores, as underage people may wish to avoid the stores which could lead to a decrease in sales from the stores who use the system. The storage of customer details may also provide opportunity for the company to benefit, as it may allow them to send customer advertisements or flyers, promoting their business and special offers analysis. The convenience of the technology is vast, but the initially costs as well as maintenance may be large, and to justify the use of the technology it would have to be ensured that it is worthwhile, depending on the size and revenue of the store. Also if the technology was not reliable it could lead to further large costs for the company and would be very inconvenient to employees and possibly customers, possibly leading to a decrease in sales