Marketing Research: Kudler Fine Foods

Marketing Research: Kudler Fine Foods

Kudler Fine Foods has continued to grow and is now poised to make significant internal changes to increase revenue and customer satisfaction. Kudler Fine Foods is a gourmet grocery store and recent market surveys have shown they have continued to exceed customer's satisfaction in every area except one: the cost of merchandise. By exploring ways to reduce costs Kudler Fine Foods will experience an increase in customer satisfaction.

The Importance of Marketing Research

Market research plays an important role in every aspect of an organization's strategy of expansion and diversification. Since Kudler Fine Foods is expanding services then it needs to know about their competitors. Market research will aide Kudler Fine Foods management in determining where they stand in contrast with competitors. This research will also help identify Kudler's market share. Using this information, Kudler Fine Foods will be able to identify where it is stronger than its competitors and then build upon its strength to increase its lead over their rivals. Similarly, market research can help it to identify their potentially weak areas and devise ways to overcome them, thus gaining on any rivals who excel in such areas.

Three key areas that need to be kept in mind are:

1) First, when conducting research "it is to play a critical role in developing strategy; research helps you make budget and strategy decisions." (Crouch, 2004)

2) Secondly, if there is an error in planning then "you need to go back and understand why and what happened, the research [is] your fallback point and baseline." (Crouch, 2004)

3) "Finally, budgets, plans and strategies need to be defended. At an executive level, research helps build business plans to get financing, sell a board of directors on a program or make the crucial multi-million dollar decision on new products." (Crouch, 2004)

Where Additional Marketing Research is Needed

Cost cutting is a primary concern of the customers. Over 42 percent of surveyed patrons DISAGREED with the statement, "The merchandise sold is a good value for the money." (Apollo Group 1, n.d.) In order to rectify this situation, research needs to go into determining the products consumers are targeting in response to this question. Questions such as:

- Which one product do you feel is the least value for your money?

- How much would you be willing to pay for this product?

- How often do you purchase this product?

The answers to these questions may just lead management to see that it is one specific brand, product, or the entire store that customers are unhappy with. At that time a marketing program highlighting the benefits of gourmet items over common or generic items may be necessary.

Additional market research may be needed in areas such as the identification of potential target customers, new territorial areas and new marketing and sales promotions.

Taking the time to investigate what people want is key to meeting their expectations. Questions such as:

- What one item is not in stock that you would like to see?

- How much would you pay for that one item?

- How often would you purchase that item?

These lead shoppers to ask what is it they want and need that we cannot provide. Knowing this for each location can target those specific stores and their clientele - and earn repeat business. The quantifiable need has to be there in order to undertake such a venture, but it will allow managers and purchasing agents to see what it is that their customers want.

These items may not be the same for each location. Thorough analysis needs to be done at both the store and company levels to determine the scope of the initiative.

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