Introduction to Kudler Fine Foods
Kudler Fine Foods is a gourmet store that serves customers in search of fine bakery products, dairy, meat and wines, both imported and domestic. The company has been growing tremendously and is currently concentrating on expansion, increasing efficiency of operations and looking for ways of retaining its customers.
The popularity of the company has continued to grow daily hence the need to initiate changes in order to raise the revenues and reduce costs. This paper justifies the importance of market research in developing the marketing strategy and tactics for Kudler Fine Foods.
The paper also focuses on competitive intelligence and explains its role in developing the marketing strategy and tactics. In addition, the paper identifies areas where Kudler Fine Foods needs to carry out additional research.
Definition of Market Research
Market research is defined as a form of business study which collects information and conducts analysis of data on customers, competitors and the market in general . It can be used to develop business plans, introduce new services or products, venture into new markets and improve company’s existing products and services.
Business organizations use market research to identify places where they are likely to record high sales on the basis of factors such as income level, gender and age of the customers. Market research identifies the characteristics of the targeted markets and assists in shaping the strategy of a company to expand.
Kudler Fine Foods will benefit from market research since the company intends to expand its services. It will enable the company come up with an expansion plan and identify its strong and weak areas. In addition, the company will be able to identify new markets, prospective customers and strategies of increasing sales.
Justification of Market Research
The main objective of Kudler Fine Foods is to increase the profitability and loyalty of its customers. The company carried out a survey of the market between 2006 and 2007 with the aim of developing their strategic objective.
During the survey many questions on staff, merchandise, pricing, staff issues and the general operations of the company were asked. The views the company received indicated that the survey was one of the company’s best market researches. The research provided the company with crucial information that was required to rectify the company’s weaknesses.
After the company carried out a survey of the market, it was discovered that there was a problem with the customer service representatives. The representatives were not courteous enough hence customers were not getting satisfied. The company noted that in 2006, 30 percent of the customers who visited the company indicated dissatisfaction. In 2007, the percentage of discontented customers increased to 36 percent.
This market research revealed that there was need for Kudler Fine foods to address the issues that left their customers dissatisfied. If the company did not conduct the market research, its progress could have been adversely affected through loss of customers.
Such a market research is critical in ensuring that customers feel satisfied hence retaining their loyalty to the company. Market research is clearly important in the development of a marketing strategy for Kudler Fine Foods because it will assist the company discover important issues that will improve its performance.
Competitive Intelligence
Competitive intelligence is information that companies gather with the aim of using it to learn about competition in a given market . It is among the strategies that are used to carry out market share forecasts. Forecasting is crucial for Kudler Fine Foods in decision making regarding the quantity of items the company should stock since it deals mostly with perishable commodities.
Competitive intelligence and analysis will enable Kudler Foods to develop strategies that will enable it remain ahead of its competitors. The company will need to carry out additional market research on how to identify potential customers, new possible markets and new ways of conducting promotions.
It is beneficial for the Kudler Fine Foods to have information on what their competitors are engaged in for a number of reasons. The first reason is that if the company’s competitors offer prizes that woo customers into their businesses, then it is advisable for Kudler Foods to adopt similar strategies in order to draw many customers into its business.
The second reason is that although Kudler Foods may think that the products of the company are the best in the market, the customers may feel that the competitors offer better products. This makes it necessary for Kudler Foods to change some of its suppliers for certain products.
Since the customers do not focus on the price so much, the company may increase the prices to march the improved quality of the products. Competitive intelligence gives companies a chance to practice innovativeness and creativity.
Areas of Additional Market Research
Although it is advisable for Kudler Fine foods to conduct market research through surveys which give them opinions, there are other ways through which the company can carry out market research. It is important for the company to be well versed with the expectations of the customers and market trends.
One of the additional methods that the company can use to conduct market research is the use of internet. The company can decide of modifying its website to include customer surveys and tracking information that is useful. The internet assists businesses to gain competitiveness.
Kudler Fine Foods has been increasing the loyalty of its customers by adding margin services to customers and provision of better services to customers. The aim of the company has been to win the loyalty of its customers and increase profitability of the existing customers and attract more.
Through market research, the company has been able to realize that it has been performing well in all its areas with an exception of customer satisfaction and pricing. In order to improve in all the areas including pricing, the company has to carry out additional research on its pricing mechanisms.
The market research will focus on strategies through which the company can decrease production and internal costs. Once overhead costs are reduced, then the amount saved will benefit the customers through reduced prices. Reduced prices will result in increase in sales, customer satisfaction and customer loyalty
Conclusion
Kudler Fine Foods has been growing remarkably and creation of a trusted customer base by carrying out market research has been useful. Through market research, the company has been able to identify areas where improvement has been necessary and corrective measures have been taken.
For instance, market research has helped the company discover that there has been a problem of customer dissatisfaction. The company has since adopted ways of solving the problem. However, the company should conduct additional research in areas like pricing and identification of potential customers.
References
Armstrong, G., & Kotler, P. (2011). Marketing: An Introduction. Upper Saddle River, NJ: Prentice Hall.
Competitive Intelligence. (2012). Web.
kotler, P., & Keller, K. (2012). Marketing Management. Upper Saddle River, NJ: Prentice Hall.