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.
A monopolistic Competition market has many sellers and provides good substitutes but differentiates their products from other companies. The nature of competition in a monopolistic market focuses on marketing, special features and pricing (Colander, 2010). Kudler Fine Foods has only a few competitors in the market that offers the same products and service to its customers. This market structure has negative and positive effects. A positive effect of Kudler Fine Foods in a monopolistic market structure is that they lead in the market and can increase competition between companies and make massive profits by setting higher prices (Colander, 2010).
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.
A potential opportunity that they could explore is to utilize self-checkout terminals in their locations. Self-checkout point of sale terminals could do many things to improve Kudler Fine Foods as a retail competitor. First, it would improve their customer service as many customers prefer to check themselves out rather than having a cashier. In today’s technology environment, “…systems can be tailored to better fit any retail environment and are more focused on improving customer service rather than cutting labor costs” (Murphey, 2009, p. 1) . Even though the prime focus of these systems is not necessarily to cut labor costs, often times they can improve efficiency.
Wegmans also carries a variety of organic products that regular stores do not carry and they sell them at very reasonable prices. I feel I share some of the same type of values as this organization because I try to feed my family as much organic food as possible and I am also very involved in helping out in the community. The Wegmans organization is very people oriented. I know some people who work there and they have nothing but great things to say about the organization. I have decided that Wegmans is the only grocery store I want to do my shopping in because of the amazing manner that they treat their customers.
Whole Foods Vision, Core Values & Strategies Kenya Pusey Introduction Whole Foods market focuses on offering people a healthier alternative lifestyle within their food consumption. The company was founded by current CEO John Mackey who partnered with Craig Weller and Mark Skiles to merge their two natural food stores, Saferway and Clarkville Natural Grocery, resulting in the opening of the original Whole Foods Market in 1980. They focused on sustainability for their consumers by providing the highest quality, least processed, most flavorful and freshest food available. However Whole Foods is a business that has to be able to increase profits and still stay competitive within their market. They are striving to create and maintain a winning strategy that allows them to operate profitably, stay competitive and keep their mission to create “Whole Foods”, Whole People” and a “Whole Planet”.
So why is organic food getting ever more popular? By just putting a label on food saying it’s healthier and safer than regular food would be enough to get people to buy it. Also with all the more and more places opening like Whole Foods Market, Central Market and Fresh Market attract people from everywhere. If consumers believe its better for them and it makes them healthier and maybe even live longer, people would buy it no matter if its more expensive than lets say Wal-Mart or Sam’s Club. Others buy organic foods over conventional because they believe it’s helping the environment or they don’t want to support the practices of agribusiness (Jackson).
* On the other hand, Whole Foods Market® sell many USDA-certified organic foods and products that aim to be environmentally friendly and ecologically responsible. For example, they do not carry eggs from hens confined to battery cages due to animal cruelty concerns. They also have their own product brands, for example, 365 Everyday Value® offer both natural and organic selections. * Moreover, Whole Foods Market® have amazing website with blogs, recipes, sale items, podcasts, tips, etc. the website is well designed and explains the concept of Whole Foods® very well.
Scientifically, ALL food is organic. The distinction made by proponents of Organic is a philosophical one, deceptively disguised as science. In the context of the popular food products, Organic is a conventional food crop that is genetically and chemically identical to its standard counterpart (Avery, 2006). Organic is a clever marketing label for a product, and nothing more. Organic food remains popular due to three common misconceptions: that it is healthier to eat; that buying organic food supports small businesses and strikes a blow against big, evil corporations; and that the cultivation method is better for the environment.
Strategically, Sara Lee is returning to its roots of food service where name recognition is the strongest. 2. Of the remaining industries represented in Sara Lee’s business portfolio, I view the retail, foodservice, and beverage industries as being the most attractive. Sara Lee does have well-developed name recognition within the North American retail industry. While the economy is still low, sales of these retail products will likely remain high as consumers purchase lunch meats and other foods rather than eating out and frozen desserts rather than purchasing from a more expensive local bakery.