Kudler Foods Marketing Analysis

Running head: Kudler Foods Marketing Analysis

Kudler Foods Marketing Analysis

University of Phoenix

MBA502

Kudler Foods Marketing Analysis

Kudler Foods is a small independent grocer with three stores in northern San Diego County. Kudler Foods specializes in providing unique and high quality ingredients for the gourmet chef. In an effort to increase profits, the company is interested in adding catering to its service offerings. The success of the catering service offering is dependent on the creation of an appropriate and effective marketing campaign. The marketing campaign must be carefully designed and implemented to provide the expected increase in profits.

Analysis

This paper will analyze the Kudler Foods' sales and marketing efforts required to implement a successful catering service program. The overall goal of the program is to provide a service to Kudler Foods' customers that will introduce the high quality products and services that Kudler Foods provides to new customers. The program will also work to improve the reputation of Kudler foods within the gourmet foods and services industry.

Marketing research review

Kudler Foods commissioned a customer satisfaction survey in 2005 and 2006 (University of Phoenix, 2007). The results of the 2005 survey show that Kudler Foods is providing stores with appropriate atmosphere, dйcor and hours. However, 22% of respondents found the customer service representatives lacked the appropriate knowledge of the stores' products. In addition, nearly 30% of the respondents found the customer service representatives to be discourteous. This is a grave concern because the clientele that Kudler Foods serves is more concerned about receiving superior and courteous customer service from very knowledgeable employee than product price.

The survey respondents also would like to see a greater variety of products than is currently offered. The greatest concern expressed on the customer service surveys is regarding the perceived value of the merchandise bought at Kudler Foods. Almost 55% of respondents disagreed or strongly disagreed that the merchandise purchased at Kudler Foods was a good value for the money. This is a very important issue considering the higher-end product line that Kudler Foods sells. It is important that the customers feel that even though they are paying a premium price, that they quality of the product justifies the price.

The 2006 customer satisfaction survey is very disappointing. Every question on the survey indicated that Kudler Foods' customers are less pleased with their shopping experience than in previous year. Customers are much more dissatisfied with the customer service they are receiving than in 2005. The survey results show that 10% fewer customers are satisfied with their interaction with the customer service representatives. This shows that almost 40% of customers are unhappy with the customer service representatives.

Satisfaction with the overall value that Kudler Foods provides continues to slide with 60% of customers now considering the merchandise purchased to be a good value. In addition, the largest drop in satisfaction was reported in the attractiveness of the stores displays. Product selection satisfaction has also dropped to 65%.

Marketing Mix

Kudler Foods should create and implement a campaign with the appropriate marketing mix to support the new catering service program. The marketing mix will be comprised of four components. The components are Product, Place, Price and Promotion and they are commonly known as the four P's of marketing (Kerin, Hartley, Berkowitz, & Rudelius, 2005).

Product is a "good, service, or idea used to satisfy the consumer's needs" (Kerin, Hartley, Berkowitz, & Rudelius, 2005). In this case, it is the service and food provided by Kudler Foods. Place is considered "A means of getting the product into the consumer's hands" (Kerin, Hartley, Berkowitz, & Rudelius, 2005). In this case, it would be the vans or trucks used to bring the product and services to the customer. Price is "What is exchanged for the product" (Kerin, Hartley, Berkowitz, & Rudelius, 2005). This would be the money paid to Kudler Foods. Promotion is "A means of communication between the seller and buyer" (Kerin, Hartley, Berkowitz, & Rudelius, 2005). In this case, the flyers, advertisement and word-of-month inform the customers about the catering service program.

Products

Kudler Foods should provide a higher-end gourmet style of food and service to its catering service customers. The customers of Kudler foods are looking for food that has the highest quality of ingredients. They are also looking for food that is expertly prepared. The presentation of the food is also an important concern, as the customers will expect an elegant and interesting presentation.

The employees that will be preparing and serving the food must be highly trained in food preparation. More importantly, they must be highly trained in etiquette and decorum. The customers that Kudler foods is targeting are looking to provide their families, friends and business associates with a dining experience rather than just food.

Pricing

The product and service that Kudler Foods is looking to provide is a cut above what is traditionally provided by catering companies. The customers are demanding a service that is out of the ordinary. It is then reasonable that the prices for this extraordinary service and food should come with a higher price. It is recommended that the pricing be set using several basic packages with the option of adding products and services ala carte. The basic packages would provide the delivery, set up and the appropriate number of servers depending of if the meal is to be served buffet or sit-down style. The pricing for the basic package should be between 3% and 5% higher than a traditional San Diego catering service's prices. This pricing will keep Kudler Foods competitive while also highlighting the higher level of service offered. The add-on ala carte products and services should be higher priced at 5% to 15% higher than the competitors. The higher prices can be justified by highlighting the quality of the service and food that is provided.

Place

The place of the Kudler Foods catering service program is an important part of the plan.