Development Requirements for Kudler Fine Foods Frequent Shopper Program

In order for Kudler Fine Foods to continue being successful, our technology should be constantly updated to keep up with our competitors and stay in line with upgrades.  The company must modernize the ways in which consumers identify and differentiate with the Kudler Fine Foods brand.  Investing and developing a strong marketing plan using impeccable photography will help increase our retail, online, and direct marketing sales (MindFireInc, 2013).  To capitalize on our marketing efforts it is imperative to analyze both the advantages and disadvantages of creating an in-house photography infrastructure versus outsourcing the

convey the information to the sales and marketing division to provide an opportunity to plan future marketing strategy. The ability for Kudler Fine Food to expand its business is part of the successful implementation plan with the potential of adding software and hardware as the need arises.

Kudler Fine Foods is a growing local upscale fine food store in San Diego. Kudler Fine Foods has three locations and specializes in bakery and pastry products, fresh produce, fresh meat, seafood, condiments, package foods, cheeses, and dairy products. Kudler Fine Foods mission is to “offer each customer a delightful and pleasing shopping outing.” With a mission statement, such as theirs Kudler Fine Foods wants to partner up with a loyalty rewards program company. This loyalty rewards program will allow customers to earn points for airfare upgrades, gifts, and other specialty foods. Kudler Fine Foods also

Kudlers’s new initiative is tracking purchase behavior at the individual customer level and providing high value incentives through a

Although Kudler Fine Foods has chosen two very specific markets to target, a more thorough understanding of those target markets is needed to deliver what they want. One of KFF’s target markets is gourmands. KFF’s research focus in this area has been primarily on the supply side: Kathy monitors what products the competition is offering, what products are advertised in gourmet magazines, and what products are shown at gourmet conventions and websites. To discover what gourmands want, KFF also needs to research the demand side. Mining on-line blogs and gourmet food forums are two ways KFF can increase its understanding of what gourmands want. Customer surveys, such as the ones KFF currently uses in-store, can also be revised and used both in-store and on-line. Specific areas to be researched include:

This initial cost of the startup of this program will be a minimal impact on Kudler Fine Foods. The initial advertisement effort will be done via social media; the companies Facebook page and Twitter account, email and word of mouth. Allowing for a reward system for costumer referrals can be used for current and new customers as the programs is employed and continues to grow. Rajiv and bell argue “customer retention costs are generally lower than customer acquisition costs, companies are better of focusing attention on their more loyal customers especially since the top 20% of customers account for 80% of revenues and often more than 100% of profits” (p. 180, 2003). Kudler Foods could reduce their marketing expenses by using a customer loyalty system through the use of rewards. The sales increase from this program should be reflected by the increase of new customers and the increased returning customers increased spending. The use of seasonal promotions only available to costumers enrolled into the frequent buyers program could also help in increased sales profits.

Kudler plans to expand these areas in the future, providing a multitude of specialized classes to its loyal customers. Offering cooking classes in many areas of the store makes customers more interested in shopping the store and learning new techniques in cooking healthy fares for their families. In addition to offering these classes, the employees are to be cross trained in many areas to provide a pleasant shopping experience for Kulder 's customers. The customers will also be provided with brochures of the dishes they will learn in the store that will provide the recipe and food suggestions that will go with the main dishes taught in the class. This suggestive information has been proven effective in marketing strategies; therefore, Kudler will use this suggestive marketing technique to increase the buying desires of the customers.

Consumers are more mindful of how their dollar is spent, and want to obtain the best bank for their buck. With general grocery stores located in La Jolla surrounding Kudler, Kudler must find innovative ways to compete and get customers into its stores. Marketing research for competitive intelligence is importance because the local grocery stores offer differentiated options to reach new customers. For example, generic stores are beginning to offer natural and organic foods, buyer programs, cooking demonstrations and slashed prices just as Kudler does and for a fraction of the cost. One can compare this to Dunkin’ Donuts and Starbucks; some folks want the experience and that is what Kudler must do; make it an experience for the consumer and potentially bring in products they do not current stock such as beauty products, vitamins and supplements, or other common grocery store items.

Kudler Fine Foods has requested a system to launch its new Frequent Shopper Program. This new initiative will track purchase behavior at the individual customer level. Through a partnership with a loyalty points program, Kudler will be able to offer their most valued customers high value incentives. Behavior patterns discovered from tracking purchases will enable Kudler to refine its processes and offerings to customers. Customers prefer Kudler’s Fine Foods because of the high quality foods. Rather than offering discounted prices for loyalty points redemption, Kudler will offer high value gifts to customers. This will promote the

Market players generally have a wide variety of potential customers, which considerably weakens buyer power. Although consumers in this industry may be loyal to particular brands or chains, loyalty to retailer brands is arguably less important than competitive pricing. Many supermarkets run rewards programs for frequent shoppers, such as Tesco’s ‘Clubcard’, and these schemes can help companies retain customers and reduce buyer power.

Strategic Objective: Increase Loyalty and Profitability of Consumers, (n.d.). Kudler Fine Foods Sales & Marketing. Retrieved November 10, 2008, fr

Kudler offers a range of products through their retail locations as well as a service offering that consists of catering services. The products that Kudler sells consist of gourmet and specialty products that are typically hard to find. Therefore Kudler operates in a fairly narrow market niche.

Over the last 77 years, Morgan Stanley has been at the forefront of the financial industry. This is from the firm focusing on creating customizable investment products that are sold to retail and institutional clients. ("Company History," 2012) However, a problem is that many competitors are entering a period of flat growth that is at the top of S Curve. This is when a company will grow so big that it becomes difficult to continue increasing profit margins. (Nunes, 2011, pp. 1 5) In the case of Morgan Stanley, the recent financial crisis has made it more difficult for the firm to improve earnings. As a result, a new strategy must be developed that will motivate the sales force to do more. To determine the most effective approach requires examining six features of a total rewards program, the specific behaviors that will be targeted, assessing the value proposition and how to attract registered representatives.

Customer satisfaction and service quality are the two important components that direct anyone’s attention in every concept related to marketing, services, etc. (Spreng and Mackoy, 2006). In today’s competitive era, the success lies in

This will help the company to deliver product and services that satisfy customers, hence increasing profitability.