Kudler's Strategy
Kudler’s Strategy
Kudler Fine Foods is in a position to use its information technology, marketing strategies, and sales plans to create a prominent place in their niche market. Focusing on internal and external environments will help Kudler formulate a successful plan for the future and prepare for the changes that occur in such a diverse platform of partnerships, contracts, suppliers, and customers. Having a sales plan in place shows forward thinking of the management team. Planning is the most important part of being a successful enterprise and now that Kudler has three stores they are in a position to evaluate where they are and develop their future.
The grocery business has changed dramatically in the past decade, as have consumers’ tastes, preferences, and demands. Although the demand for gourmet foods is increasing, specialty grocers are facing more competition from larger grocery chains and internet sites. According to the National Association for the Specialty Food Trade, specialty food sales reached $38.5 billion in 2006, a 13% increase over 2005. Approximately 69% of these sales were attributed to supermarkets or other mass outlets, leaving 21% of total sales to specialty food stores (Gatty, 2007). Kudler must adapt to meet the ever-changing desires and preferences of consumers. More than ever before, food consumers want products that are convenient, healthy, organic, and moderately priced. According to the FMI’s US Grocery Shopper Trends 2006 report, 86% of shoppers have a level of concern regarding the nutritional content of their food. This is especially true for high-income households (Gatty, 2007). Kudler is offering local organic produce to meet these needs as well as loyalty points to earn high-end items. To meet business goals and remain profitable, Kudler must embrace the ever-changing external environment and adjust their strategic plans accordingly.
Using Internet tools, Kudler can implement specific search strategies to gather competitive...
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