Kudler Fine Foods's Strategic Plan

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Kudler Fine Foods Problem Statement Christine Hogue University of Phoenix MGT521 25 July 2010 Ed Darley This paper will discuss problems identified with the Kudler Fine Food’s Strategic Plan, dated 2003. Kathy Kudler established Kudler Fine Food’s (KFF) in 1998 by opening her first store in La Jolla, CA. Over the ensuing years she opened two additional locations one in Del Mar, CA and the other in Encinitas, CA. KFF’s goal is to be a premiere gourmet grocery store offering quality meats, produce, cheese and wine, with a focus on customer service. KFF’s has several problems with its current strategic plan that must be addressed to ensure success of the business and secure Kathy’s vision and investment. I will discuss two major problem…show more content…
Kathy found the La Jolla community did not have a convenient gourmet place to purchase fresh produce, gourmet specialty services and fresh meats. Her plan to open KFF to fill those needs was an instant hit; customers have made KFF a part of their daily routine. Until recently there was a lack of a marketing strategy for KFF. Kathy assumed if she replicated the La Jolla strategy she would have the same success. The store has not been able to bring in the same return on investment as the first location. One of the major problems seems to be the median household income for the new location doesn’t support the exact same business model. Kathy should have done more research on the new location to determine customer needs, income level, and population. KFF’s strategic plan was not implemented until 2003, so it appears market research was not conducted prior to expansion. The Del Mar location is at the break-even point, it appears the local economy may not be able to handle the same type of business opportunity as La Jolla. The latest store opening was in Encinitas, which has a lower average median income level then the other locations. The one big difference is the large population in Encinitas could support a store targeted to consumer gourmet…show more content…
By tackling the two problems I have identified KFF will have a firmer foundation to make future resource management and expansion decisions. References University of Phoenix. (2010). Kudler Fine Foods. Retrieved from University of Phoenix Prentice Hall website: https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler/Admin/StrategicPlan2003.pdf 25 July 2010. University of Phoenix. (2010). Problem Based Solving Scenarios: An Approach to Identify Opportunities to Create Value for the Business. Retrieved from University of Phoenix MGT521 Class materials: https://ecampus.phoenix.edu/classroom/ic/classroom.aspx 25 July

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