Mkt 421 Week 3 Kudler Paper

Marketing Research Kudler first-rate Foods Susan Karr MKT 421 October 1, 2012 Ricci Rizzo Marketing Research Kudler ticket Foods In order to succeed, it is fundamental that businesses satisfy consumers needs (and desires) for goods and services. Appropriate merchandise look provides the data necessary to understand those needs and respond to them effectively and profitably. Kudler Fine Foods (KFF) has performed market seek in the past. Some of that research has been dishful some has not. Additional market research is needed for KFF to apply a larger share of the market and increase profitability.Kudler Fine Foods is a gastronome grocery store. KFF sells meat, produce, cheese, and wine. They in addition provide catering services. KFF has poseed two market segments, high-income consumers and gourmands (gourmet food enthusiasts) (Kudler Fine Foods, 2011, Sales Plan 2007 webpage). These markets were selected based on the strengths owner Kathy Kudler brings to her organization. Gourmet food is Kathys passion. KFF has used historical data, node surveys, and feedback from its sales force to fail what its target market wants.Observing patterns in historical data and extending those patterns to predict the future, or trend extrapolation, is the best-known statistical rule for predicting future sales (Kerin, Hartley, & Rudelius, 2011, p. 215). Salesforce survey forecasts, such as the feedback from managers at the operations analyse meetings on the sample creviceings Kathy is considering, are an different logical approach to discovering what the target customer wants (Kerin, Hartley, & Rudelius, 2011, p. 215). KFFs customer surveys are an additional tool used to fine-tune what their customers (new and existing) really want.The company has begun to track customer purchase behavior to forecast which products and services are most likely to be in take aim and when specifically (year-round, seasonally, holidays, etc. ). KFF is considering addressing chan ges in consumer expectations in the changing e-commerce arena (KFF currently has an informational website that consumers feces visit). KFF believes quality and persuasiveness items, especially new ones, are most important to its customers. Kudler Fine Foods has no direct competition with other gourmet grocery stores in their current locations.Kathy chose the locations for this reason and for their accessibility to KFFs target high income consumers. KFF has been punctuate direct situation promotions to high income zip legislations, word-of-mouth advertising via satisfied customers, and personal sales promotions both(prenominal) in-store and at various community events. Although Kudler Fine Foods has chosen two very specific markets to target, a more than thorough intelligence of those target markets is needed to deliver what they want. One of KFFs target markets is gourmands.KFFs research focus in this area has been primarily on the supply side Kathy monitors what products th e competition is offering, what products are denote in gourmet magazines, and what products are shown at gourmet conventions and websites. To discover what gourmands want, KFF to a fault needs to research the indigence side. Mining on-line blogs and gourmet food forums are two ways KFF can increase its understanding of what gourmands want. client surveys, such as the ones KFF currently uses in-store, can also be revised and used both in-store and on-line. Specific areas to be researched include * What products do they want? A changing selection of items or tralatitious items? * The newest items available or a more specific selection, such as local artisan wines and cheeses? * When do they want it? * Are there different times when certain items are desired more or less? * What do they want over the holiday season? Or during the summer versus the winter? * Where / how do they want it delivered? * Do they want to take a crap for it and prepare it themselves? If so, do they want to be able to shop on-line? * Do they want to attend classes to learn how to use the products? * Are they interested in on-line tutorials? * How much do they want the product to cost? Note Based on answers to KFFs 2011 node Survey, price is one area where additional research is vital. More than 50% of respondents did not feel the merchandise was a good value for the money (Kudler Fine Foods, 2011, 2011 Market Survey webpage). * What do they expect to pay up? * What are they willing to pay? (Rizzo, 2012). Additional research is needed to more effectively reach KFFs other target market, high income consumers. Currently KFF segments this market geographically based on zip code areas determined by various factors to be higher-income areas (based on real estate prices, for example).Although somewhat targeted, this promotional method uses the shotgun approach direct mail is blasted over an area in hopes of reaching the target (Response Targeted Marketing, 2010). Past sales data (informatio n on customers who spent over a certain amount or purchased large quantities) can be mined to determine where they live and how much they make. This demographic information can then be used to procure or generate lists of similar people. Using direct mail promotions, the target market can be contacted more effectively. It is important that KFF take measures to track the results of marketing campaigns.For example, if a direct mail postcard with a promotional offer is sent out, tracking sales generated from that offer will tell KFF if they are reaching their target or wasting their time and need to re-aim. This also means asking customers directly how they found out about KFF or what brought them into the store. Again, updating the current Customer Survey is a simple way to accomplish this. Kudler Fine Foods can improve its marketing outline by focusing on three competitive intelligence priorities 1. Understanding the consumer environment 2. Assessing and tracking contenders actions 3.Providing early warnings of opportunities and threats Several of the recommendations for increasing understanding of the target market will also help KFF understand the consumer environment better. Increased utilization of internet technology, such as implementing on-line surveys and monitoring gourmet consumer blogs and forums, is simple and cost-effective. Continuing to monitor competitors as Kathy has in the past is also important. To prioritize this, KFFs division heads and managers can contribute to intelligence gathering, paying particular attention to competition, customers, and trends relevant to their areas of expertise.Most of this information can be gathered during customer and employee interactions some will require research via internet, magazine, and the gourmet food community, even see competitors stores. Communication is vital to provide KFF with early warning of threats and opportunities. Kathy visits the stores personally Discussing consumers and competitors, not just products and services, with employees and managers during these visits will procure opportunities, as well as threats, are revealed in a timely manner.Kudler Fine Foods has begun to develop a foundation for successfully marketing its products and services. It is important that KFF perform additional research in some areas and touch on to modify and improve on its marketing strategy. By updating it Customer Survey, capitalizing on information freely available on the internet and taking advantage of information previously gathered, KFF can reach a larger share of the gourmet foods retail market and increase profitability. References Kerin, R. , Hartley, S. & Rudelius, W. (2011). Marketing (10th ed. ). New York, NY McGraw-Hill.Kudler Fine Foods (2011). Retrieved from https//ecampus. phoenix. edu/secure/aapd/cist/vop/Business/Kudler2/intranet/sales-plan. asp Response Targeted Marketing (2010). Shotgun Marketing Versus Targeted Marketing 8 stairs To Focus Your Energies And Get More Sales For Less Investment. Retrieved from http//www. responsetargetedmarketing. com/2010/02/05/shotgun-marketing-versus-targeted-marketing-8-steps-to-focus-your-energies-and-get-more-sales-for-less-investment/ Rizzo, R. (2012). Marketing Process. Retrieved from http//www. screencast. com/t/R65nHl3j8ARl