Kudler Fine Foods is an upscale specialty food store, with three locations in California. The three stores are located in La Jolla, Del Mar and Encinitas. Each location has approximately 16,000 square feet of space and getting the most out of this space is what Kudler wants to do. Kudler Fine Foods has experienced a significant growth and is now focused on expanding its services through its new marketing strategies.
Kudler's marketing strategies are based on three different promotions including: Expanding services, frequent shopper program, and increased efficiency. To help with expanding their services, Kudler Fine Foods has the idea of providing cooking classes to existing customers with the instruction of a celebrity chef to boost the sales of the high margin foods and beverages. At this point it is not clear if these classes will be free of charge for customers or if a fee will be required.
Even though a survey shows that the customer satisfaction regarding the price of merchandise to the received value is highly dissatisfactory, Kudler Fine Foods feels that their customers are not price dependent. In 2003 and 2004, 52% and 60% felt that they had paid more for the merchandise than it was worth. The stores target the high-income clientele but more research must be obtained to determine whether the stores are located in the proper areas to target this crowd. Just because a store is located in an affluent area, it does not mean that its population would purchase high priced gourmet foods.
Many stores today offer a frequent shopper program in hopes that their customers will continue to be loyal in shopping at their stores. Kudler Fine Foods is thinking along these same lines. Instead of offering a sale promotion with discounted prices, they will give customers loyalty points. Without...