Although Kudler Fine Foods (KFF) has been successful with the 2003 strategic plan, there is still opportunity for growth. To do so, KFF needs to use all resources available to the company. For KFF to rise above their competition and maintain its status, the company should revisit their review current financial situations, marketing strategies, and re-evaluate staffing needs. KFF would first need to obtain a current and up-to-date financial statement which outlines in detail of each store’s financial situation. As a result, this allows management team to focus on the marketing efforts through implementing aggressive tactics.
Based on KFF’s 2003 Income Statement, the company paid out $933,917 in wages alone. To minimize wages, KFF needs to re-evaluate staffing needs and work schedules to reduce payroll cost and increase profit. Instead of offering full-time positions to wine steward and culinary specialist during slow periods, KFF should offer part-time positions during this time. Another alternative would be for KFF to hire and train non-specialist employees to keep payroll cost low. According to the 2003 Strategic Planning, the company’s only marketing tool was local print media.
If KFF expand its marketing efforts to include a broader approach, then the company may see an increase in profits. Take for example, the current website is plain and lacks features that other competitor’s websites acquire. KFF’s website has no listing of products, site map, or even a search engine where consumers can search for a particular product. Besides that, the website has no e-commerce for consumer to purchase products online. Based on the marketing and sales budget, KFF projected for 2004 would be a reasonable budget if applied properly.
KFF must focus its advertising and marketing on things such as, coupons and frequent reward cards. In addition to this, KFF should renovate the website while still maintaining its simplicity theme, but adding more contemporary features. The site needs to have a site map for easy navigation. Generating a product database would allow consumers to search for products as well as make purchases online. KFF should consider a marketing research. This type of research advises what consumers will and will not buy based on quality, prices, and alternatives.
The marketing research will include opportunity studies, local competitors, market size, and demographics. KFF currently uses intranet to manage inventory and sales, and internet to provide general information to consumers. Implementing a database will assist KFF in tracking customer’s information such as contact information, previous orders, and provide management with inventory count. Through this database changes KFF is able to communicate effectively with their customers, staff and managers, also offer various promotional items through the web and email.
This will generate a successful business plan and more opportunities for executives to maintain accurate inventory counts, and customers’ orders which will help KFF track sales and productions. Scanning is an essential part to a company’s success and survival. A SWOT analysis will help a company scan the industry for ideas that will allow the company to keep up to date with the current strategy trends. Although KFF 2003 Strategy Plan provides a complete SWOT analysis of the industry, the company should still consider the following three factors for survival:
Potential Threat of New Competitors: Although KFF is growing and have developed a niche in specialized gourmet grocery, they are still competing against big chain stores such as Ralphs, Vons, and Albertsons or healthy stores like Trader Joe’s and Fresh & Easy. These stores are continually advertising organic produce and foods and will not be in direct competition with KFF since these companies are targeting for only customers that are interested only in organic produce and food.
KFF offers not only a large variety of organic produce and food, it also offers a wide range of selection, organic and nonorganic, as well as excellent customer service. Since KFF is still fairly new compared to the other stores, it is imperative that the company continues to scan the industry for best up to date practices. It allows the company to look for opportunities in minimizing and eliminating its threats and weaknesses. KFF can also use information resources to build barriers to discourage competitors from entering the market.
Establishing information technology with KFF’s purchasing department equipped with comprehensive knowledge about products and consumers, it will help deter other competitors from entering the industry. Buyer’s Bargaining Power: If KFF provides its customers access to the same products as their other locations or the big store chains and the availability to buy in bulk, it will give its customers bargaining power. The idea is to give the buyers what they want at their convenience, switching costs, and separating the company from its competitors.
This can also be said about supplier’s bargaining power. Supplier’s Bargaining Power: If KFF expands its suppliers, it will have the opportunity to increase its purchasing options, obtain better quotes, and have a wider selection of products available to its customers. The idea behind this is to minimize monopoly of prices or threats and have the flexibility to adequately. Take for example, a company with one supplier for a specified product.
If the supplier increase its rates, KFF would have two choices: to no longer carry the product, which will minimize selections for customers or agree to the given price, which can be costly. These three factors will help KFF be proactive and maintain its competitive advantage by being able to identify competition strategies, the effectiveness of information resources, and the possible changes over time. The use of information resources will allow the company to be one step ahead of the game.
It will give KFF the ability to foresee any issues and will be able to handle their competitors more effectively. KFF is already on the right track for success and continue growth. But to continue this path, KFF must take advantage of available technology and resources to optimize its success. References Business Resource Software, Inc. (2010). Marketing Plan. Retrieved 05/09/2010 from http://www. businessplans. org/Market. html Plan Magic Corporation (2010). Plan Magaic Retail. Retrieved 05/10/2010 from http://planmagic. com/business_plan/retail/grocery_store_business_plan. html