Mrs. Kudler recognizes the importance of word of mouth promotion, which re-enforces the idea of in store gatherings and cooking classes. Over time, the organization will increase profitability if these events are positive and properly promoted. This is best done when attempting to increase the customer’s value chain. Catering and the Local Growers Both the catering service and direct buying from local growers will potentially increase profit for Kudler Fine Foods. Making good use of real estate (using the in store kitchen for catering cooking) and improving efficiency/lowering cost (agile inventory system) gives the organization a competitive advantage in the gourmet food industry.
Ordering for three stores is difficult due to the time involved, and as the business grows to new locations, a more efficient manner to order is required. The best the solution to this problem is to use modern technology, and use an automated ordering replenishment system. One company that provides this service is Red Prairie (www.redprairie.com).This type of technology will allow Kathy to generate automated suggested orders based on sales, seasonality, stock plan, and quantities on hand. Food inventory planning will enable Kathy to have individualized ordering plans for each store. Food cost managers will generate sales forecasts to reduce the carrying costs of inventory.
5/2/13 BSA/310 Frequent Shopper Program Kudler Fine Foods created a frequent shopper program which gives customers incentives to continue shopping there. Their rewards are determined by how much is spent on groceries and how frequent purchases are made. “Frequent Shopper Program proves the ability to gather data for marketing programs and run promotions for the loyal customers.” (Frequent Shopper). Web based advertising would allow for major cost reduction and provide helpful and effective consumer awareness about said products. In order for Kudler Fine Foods to develop a functioning frequent shopper program, it must track and monitor consumers shopping behavior.
The product departmentalization strategy of the grocery stores works to streamline the operation of each gourmet specialty department. It allows the top managers of each area to monitor productivity and make strategic adjustments that are beneficial for that department. The key here is specialization. This is a small business that needs to be very specific in its administration and product availability. The key positions that support the functional organizational structure are the President, the Store Managers, the Director of Finance, the Director of Human Resources, and the Director of Store Operations.
In the past Kudler Fine Foods has secured its clientele by using newspaper, and word of mouth. As they progress forward many of their target market will be a younger demographic and will be reached via social networking. Technology will be a large part of marketing to their customers about store promotions and new products and services. One large cost savings for Kudler Fine Foods is that using social networking is usually not as expensive as direct mail, or newspaper. They will also save in man hours used to set up and take down in-store displays which can be uses to promote catering
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).
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. Focusing primarily on the costs of similar products to ensure that they will be able to remain competitive are indeed truly offering quality product at affordable prices. Saving money is a primary concern for most consumers and Kudler needs to invest in research tactics in this area to address that consumer
The creation of a roadmap to a strategic plan should be followed up with a scorecard of the business. The scorecard will allow the business to see if the roadmap is work or not and allow some adjustments to the plan where needed. As a small bakery it is important that my strategic plan helps to drive consumers and generate revenue. Small businesses needs to monitor their plan on a daily bases to stay ahead of the competition. Small business will need to think outside of the normal circumstances in marketing their product.
Pursuits of gourmet food increases as the middle and upper-middle classes grow in Spain and Mexico * 2. Profits increase as customers purchase other gourmet products in addition to the flavored vinegars * 3. Possible further expansion to other international markets * 4. Increasing customer awareness of products offered through street fairs and farmers’ markets | * 1. Poor economic conditions create the need to purchase necessities rather than specialty products * 2.
Module 5 Written Assignment - Use of Lean and ABC In Cosmic Cookie Author Note Mod 5 Written Assignment-Use of Lean and ABC in Receiving materials and baking matierals from suppliers | Creating cookie products | Shipping cookie products to customers | Advertitising online and locally about sales and promotions | Customer service and improvements that can be made | | | | | | Making sure our products are not only reasonably priced but ensuring Cosmic Cookie is creating a profit while adhering to all business legality | | As we expand our business, hiring new personnel that can add value and experience to Cosmic Cookie while making sure that our current employees receive up to date training | | Discovering new