Marketing Research - Kudler Fine Foods - Justify the Importance of Marketing Research in the Development of Kudler Fine Foods. - MKT/421

Essay by THENEWYORKERUniversity, Bachelor'sA+, April 2006

download word file, 3 pages 4.2

Kudler Fine Foods is a Southern Californian specialty gourmet food store. It has currently three locations with the plan to open the fourth location in the near future. The stores offer the finest food and the best ingredients to upscale customers in order to provide a one stop shopping for an excusive home cooked meal. Kudler Fine Foods has experienced a significant growth and is now focused on expanding the services through its new marketing strategies.

The new marketing strategies are based on three different promotions: Expanding Services, Frequent Shopper Program, and Increased Efficiency. The Expanding Services is an idea, where Kudler Food provides cooking classes to mostly existing customers with the instructions of celebrity chefs to boost the sales of the high margin foods and beverages. It is not clear that these cooking classes would be free of charge for the customers or how much the charge would be.

Even though, our survey shows that the customer satisfaction regarding the price of the merchandise to the received value is highly dissatisfactory, Kudler food feels that their customers are not price dependent. In 2003 and 2004, more than 52% and 60% of the customers felt that they paid more for the merchandise that it was worth. Consequently, pushing the high margin merchandise through sales promotion might not be the best option for the company. As the stores target market is defined as a high-end clientele, who is willing and able to spend extra amount of money for gourmet gastronomic pleasures, additional market research is needed to clarify that this target market in the stores demographic area, would see the extra spending as an equivalent value received for their money. Just because the stores adjacent area has affluent demographic characteristic, it does not mean that this population would indulge itself with...