Kudler Marketing
Resource: Kudler Fine Foods Virtual Organization
The importance of marketing: Kudler Fine Foods
The food business is a very volatile industry. Recently, there have been several favorable trends that could possibly work in Kudler Fine Foods' favor: a trend towards buying more organic food, and an interest in exotic and imported goods. Consumers are more concerned than ever with the ingredients and history of what they consume. "Organic food retail sales reached an estimated $10.3 billion in 2003, up from $3.5 billion in 1997" (Dimitri & Oberholzer). However, because prices of organic foods tend to be higher than those of standard-grown products, demand can be volatile, particularly during an economic downturn. When people are concerned about affording basic necessities, buying organic is less important to them. Kudler must use marketing research to determine if demand for organics is continuing to grow at a rapid pace, or is leveling off. It must forecast several economic scenarios,...
While consumers may have a desire to purchase organically-grown vegetables and fruits, they may feel less strongly about baked goods made with organic flour. Marketing research can help determine areas of highest demand. Anticipating demand patterns is essential in the food industry, because the inventory is perishable and cannot even be sold at a discount, past a certain point, particularly at a company which bases its reputation upon quality rather than price, like Kudler.
Kudler must also keep abreast of the prices and offerings of its competitors, of which there are many in the organic foods market. Whole Foods is continuing to expand its all-organic offerings across the nation, and has a strong and loyal following. Even some discount and 'big box' stores like Wal-Mart are offering organic options. Kudler must determine what organic products are desired, what are the prices and the offerings of…
