Qnt-351

1425 Words Nov 4th, 2014 6 Pages
Week-4 Kudler Fine Foods
Lawrence Callahan
ECO-365
July 31, 2013
Dan Ershadi

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Kudler Fine Foods is an upscale / specialty gourmet grocery food store catering to high end clientele who are seeking the finer things in life. They opened their doors in June of 1998 and currently have three locations in the San Diego area (La Jolla, Del Mar and Encinitas). Each is about the same size with approximately 8,000 square feet of retail space, each providing the same products. Kudler’s is more expensive than a traditional grocery store, but plan to service a more refined customer found in more upscale areas. They specialize in (All of which are special that Kudler’s uniquely provides): * Baked goods that are baked fresh daily
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Non-price competition: Kudler’s has recently spent $368,200 on marketing and advertising to promote their products and spends extensive amounts of time monitoring their competition and the products they offer. The advertisement and other selling costs by a Kudler change the demand for their products. Freedom of entry and exit: There is the ability of other firms to enter and exit the gourmet grocery environment, but most new firms would probably have to start out small and would initially be a very limited threat to Kudler. Refer to Table-1 for additional classification factors.
This monopolistic competition market structure has a positive effect on Kudler because it allows Kudler and their speciality foods to carve out a niche that the competition will find it hard to enter. Kudler’s market strategy (locations and unique products) should be very effective in keeping out potential competitors and establish a large barrier to competitor entry. Since Kudler’s stores are located in areas with limited populations the ability of competitors to gain entry into their market is limited. Since competitors cannot enter their markets, Kudler should experience long-term profitability providing they keep their customers happy.
After reviewing company strengths and weaknesses I have the following Market Strategy

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