Competition
The major competitors to Kudler Foods in France and Germany are Filterfresh Coffee Service and Flavia. A subsidiary of Van Houtte Inc. Filterfresh Coffee Service was the initial pioneer of a one-cup brewing system in the coffee industry. It introduced the technology in 1980. Despite being the pioneers, their organizational and operational structures provide adequate room for improvement (Anderson, 2005). The hopper they use makes it a necessity to clean and re-load coffee beans. Kudler intends to overcome this shortcoming by introducing K-cup, which is more convenient, better, and hence preferred by the clients within the target market. Flavia however more of a threat to Kudler, as its approach is almost similar to Kudler’s. Kudler intends to counter this by offering an increased focus on customer satisfaction. Though unconfirmed, the impending entry of Procter and gamble into the two coffee markets will raise competition considering the company’s popularity (Sherry, 2002). Kudler intends to deal with this by introducing a customer loyalty program whereby customers who consistently use our products receive appropriate rewards, for instance, a free month supply. Kudler will offer better pricing as compared to Procter and Gamble. Filterfresh and Flavia price their Gourmet coffee models at $52 and $53 respectively (Anderson, 2005). Based on existing markets data from other markets, Proctor and Gamble are expected to offer a price range of between $53 and $54. Kudler intends to set a lower market entry price of $50 and later re-adjust the price (David, 2004). Kudler will also use mass retail centers and grocery outlets as selling points to enhance its ability to interact with clients and understand their needs. The major challenge is convincing clients that our Gourmet coffee model comes with better quality as compared to the other brands.
Marketing
Marketing Objectives
Marketing will aim to position Kudler as a strong force in the gourmet coffee market in Germany and France. Additionally, it will focus on client growth and hence the consolidation of a considerable portion of the market. More specifically, Kudler Foods intends to consolidate a market share of not less than 5% over a period of one year.
Marketing strategy
The market gourmet coffee market in Germany and France is segmented into three broad categories (McCarthy & William, 2005). Previous research by Anderson (2005) amongst gourmet coffee consumers revealed that demonstration through the internet and other public media increased purchase possibilities of the product by 75 – 82%. Advertisement and demonstration campaigns will be used in the marketing of the product. Correspondingly, advertisement/demonstration campaigns will be based on these three categories namely: the aged, the illiterate, and the literate. Kudler will also use pricing as a marketing strategy. Initially, the market price will be set lower than that of its competitors to attract customers. Having initially conducted a study on Gourmet coffee consumer preference, the brand produced will be easy to clean up in addition to having consistent taste and variety. These elements will attract customers to use the product. The target market, however, remains the same market that competitors are targeting or have already gripped. In general, the marketing strategy will involve initial low pricing accompanied with high quality, media campaigns, and demonstrations aimed at sensitizing the public on the good qualities of Kudler’s Gourmet coffee.
References
Anderson, E.T. (2005). Keurig At Home: Managing a New Product Launch. Harvard Business School Review, 28(2), 23.
David, K. (2004). “At What Cost Convenience?” Testing the New Single-Serve Coffee Systems.” Journal of Marketing and Business Planning, 12(3), 45- 47.
McCarthy, J. E., & William, D. (2005). Perrault Jr. Basic Marketing: A Global-Managerial Approach (15th Ed.). Boston: McGraw-Hill Irwin, 234 – 249.
Sherry, C. (2002). “Coffee shops look to fill caffeine cravings.” The Post-Crescent. Web.