LIVORIA SANDWICHES EXECUTIVE SUMMARY This report examines the current situation of the company and alternatives available to increase overall profitability and cash flow. The first alternative explores the option of franchising the company and the second alternative examines the effect of expanding the product line. The second option is recommended as it has a more profound effect on profitability while responding to the consumer preferences in Dawkins. The second option also meets the target net income of 1.1 million dollars by 2015. In addition to these important measures, the company’s product is maintained at a high level of quality.
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).
* Meets the desire of Paul Livoria * Additional revenue source ( appendix 4) * Increasing franchising trend, 70% of restaurants in Dawkins are franchises * Takes advantage of population growth and high family disposal income in Dawkins * A strong motive for franchise managers to make their restaurants as profitable as possible * An opportunity to improve menu base on local demand, shared innovative ideas and success stories among franchisees that can help strengthened growth Cons * Risk of losing sandwich quality as managers might not comply to standard procedures or invest in people or maintenance * Additional cost of finding and monitoring company managers * In case of failure to comply to franchise agreement, terminating the contract can be costly and difficult * Increasing strict quality heath control in Dawkins and risk of losing franchises that do not adhere to these quality
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.
When a family goes out to eat out at McDonalds, they buy meals that are extremely over portioned or "meals that can easily make up to half of their recommended daily intake of calories"(Brownlee 1). Restaurant's commercials appeal to the much younger generation. It makes them want to go eat there and usually get the toy that comes along with that Happy Meal. That's where parents need to step in and say no, instead of giving in and taking them to go eat since it's an easier option. According to David Barboza, author of "If You Pitch, They Will Eat", "increase in food marketing to children has closely tacked their increase in weight"(5).
Even though it more expensive it is healthier for our bodies. An example of how the organic food industry is growing so fast is Stoneyfield. They had to sell their company to Dannon, because they couldn’t keep up with the mass productions they had to keep up with, when Walmart decided to get into the organic industry too and order from
Weintraub proves a lot of why parents are blame for America’s obesity but I also blame the fast food companies. With so much advertising more children are easy to fall upon it. For example, “’The programs have become advertising for the food, and the food has become advertising for the programs,’” says Professor Linn of Harvard. (39). More and more vulnerable kids are intrigued by the media.
For Promotions, the sales and marketing department need to work together, since a good promotion of a new or existing product will bring more revenues to Kudler Fine Foods. Sales department has to come up with a group of strategic objectives that will help target the financial goals of the company as well as sales. By doing a good marketing program towards the cooking class parties that the company holds, that will bring more customers that will purchase the same products use in the party and will look around to other options that the store gives them. Now with Place Kathy already tested the waters by opening two other stores in 2000 and in 2003, and even though is a good idea for her to keep expanding, is also important and healthy for the company that she improve the actual stores like is mentioned, that way the company is better known and eventually the same customers in other regions will request the opening of a new store in their area that they will
This is so any extra funds that are accumulated can go towards a new marketing strategy so that customers may be rewarded for being loyal to Kudler Fine Foods. A second action plan that may be needed to increase revenue is to increase the efficiency program. Here is where Yvonne Reynolds along with the inventory manger will have to find out how to decrease the amount of food that is being kept therefore; the company can save funds to create better and improved marketing strategies Lateral Collaboration and Vertical Collaboration Kudler’s management team has worked to develop a plan for transforming the stores and its employees to align with the mission and vision statements. The purpose of this strategic direction is to clearly state the major areas of focus for the organization. In order to achieve its objectives it is of utmost importance that Kudler have reliable lateral and vertical collaboration.
Introduction Kudler Fine Foods is known for it’s operations, management, and marketing prowess. During the past few years, Kudler has experienced considerable growth within its respected market and is now looking to branch out into other markets where they can be competitive. The establishment of competitiveness in other markets will be triggered by how well Kudler can market itself in a struggling economy. It is important to analyze areas in which more marketing research is needed and to keep a watchful eye out on the competition. Strengthening areas of weakness that have little or no research will help Kudler stay ahead of the game in the months and quarters to come.