Italians take social interaction seriously, they have a need to make good impressions with their parties and celebrations (Italy, 2012, p. 2). Food is a big part of this where the meal may have three courses and last up to four hours (Italy, 2012, p. 3-5). France has a more personal level of socializing that is very formal and organized. An invitation is typically sent for visiting and a meal could have up to four courses if one is involved. During each meal, there may be more than one type of wine paired witheach course. Wine gifts are expected to be of high quality or the host will consider the gift an insult (France, 2012, p. 3). Kathy is depending on her wine stewards and top chefs to help the French with these important hosting, dining, and wine etiquette decisions. Understanding these differences between the Italians and the French, Kudler Foods can be more successful with marketing their target market.
Market Needs
It is imperative for Kudler’s marketing efforts to be customer oriented. Therefore, Kudler’s management has to be sure that the product and service they are offering is what the customer needs. Marketing efforts do not succeed when the company produces the product before convincing consumers to purchase it (Kotler, & Keller, 2007). Therefore, the company will need to assess the French market needs and make a demand for their product within that segment.
The French savor and enjoy their food, tend to have more gourmets than gluttons, and taste foods individually making France a great location for the company to expand their gourmet food product line and launch the frequent shopper’s program (France, Food, and Drink Report, 2011). By choosing to expand into a location that has such a high demand for gourmet products, the company has positioned itself well. Organizing a market need is beneficial for evaluating the target market and market segment (Kotler & Keller, 2007). Acquiring an established population that already purchases high quality gourmet foods, cheese, and wine products will assist Kudler Foods’ decision on how to approach its potential customers through targeted market research and advertising.
Market Potential and Growth
Kudler has experienced an equitable market growth, and demand for the service and products the company offers and is at a steady increase (UOP, 2012). The company has realized there is a larger market for the new product they are ready to launch because of their continued success. The company will complete a systematic design, analysis, collection, market research, relevant findings, and data reporting to particular marketing strategies that the company is executing (Kotler & Keller, 2006). The results of the company’s marketing research shows the French market experiences growth two to three times the conventional rate catering sector. Moreover, it is recorded up 13% per year over the past ten years for snack foods and 10% a year over the past seven years for gourmet and conventional catering products. Savory foods and snacks represent 50% of the French consumption, sandwiches are 25%, and sweets are 18% (France, Food & Drink report, 2011). Also, the company will organize a product market matrix to allow management ways to evaluate and expand the new and existing products that will describe product development, market development, diversification, and market penetration (Kotler & Keller, 2006). The company will be strategically placed in an average to upscale area surrounded by elite businesses and tourists looking for the type of service Kudler provides. In addition, it is important for Kudler’s management and marketing group to have a good understanding of the marketing mix.
Strength Weakness Opportunity and Threat analysis
An important part of the marketing mix is the strength, weakness, opportunity and threat (SWOT) analysis. Kudler Food’s best strength is its employees. Professional wine stewards and knowledgeable staff give Kudler an advantage over competitors. Kudler’s gives back to the community by giving fresh product to the less fortunate strengthening its image with charitable operations. Kudler has been building relationships with the vendors, people and other channels by utilizing farms nearby. France and Italy already have open trade agreements making the opening of new businesses easier. Some of the weaknesses for the French location are the ethnocentricity that the French have in wanting to maintain their French heritage and identity in everything they do (de La Boursodiere, 2012). It’s origin being inItaly may make it more challenging for Kudler to bridge this cultural difference. Kudler’s marketing must show a great appreciation, integration and brand itself with the French culture by sourcing its products and produce locally as much as possible ("France," 2012, p. 2). Utilizing the farms in France for the produce will ensure their opportunities. The opportunity in the French region is great, as the French take great pride in their cooking and pay higher prices to achieve success. Both cultures place high importance on the food they serve their families and guests. One of the biggest threats for the success of Kudler Food’s is the small markets already available within both countries. These markets have been established in each country for years and have loyal customers. Kudler will have to convince those customers that the value of Kudler is better than the value of their old and trusted friends if Kudler is to succeed.
The Competition
No company can succeed if its products and offerings resemble every other product and offering. Market-leading firms gain and keep market share through careful positioning and differentiation, ensuring that each offering represents a distinctive big idea in the mind of the target market. In addition, companies must pay keen attention to their competitors in order to effectively devise and implement the best brand positioning strategies. Markets have become too competitive to focus on the customer alone without considering other successful marketing avenues (Kotler & Keller, 2007, Pg. 155).
The competition in France consists of four gourmet grocery stores in Paris known as les grandes epiceries. However, they really do not have the same selection or quantity of products Kudler’s carries (Traub, 2012). One store specializes in Japanese cuisine, another in different mustards, and the other two are quite small and don’t have a very large selection of products given the cost of operating in Paris. Kudler believes that their choice of products can outperform their competition. Cheese and wine are chosen carefully because they anticipate being one of few stores in the new regions carrying substantial product varieties. In addition, cheese pairs well with fine wines and freshly baked bread or Italian tapas. Moreover, the Italian and French markets are large global wine consumers.
Marketing Objectives and Strategy
An organization that endeavors to open an international branch learns quickly that possessing a good communications plan prevents failure (Thomadsen, 2007). There has to be thorough plan and analysis to maintain control in different cultures and economies (Thomadsen, 2007). Kudler’s vision is to establish a store that supplies a wide selection of gourmet products to the largest market niche population consisting of the freshest ingredients (UOP, 2012). The convenience of combining the one stop shopping with reasonable prices has been Kudler’s recipe for success in Italy. the company will continue to succeed in Italy as well as in the new international market, France by applying their success recipe to their frequent shoppers program launch,. To achieve the objectives the company will have to implement the following:
- Provide the target audience in France with information about benefits and features of their products and their competitive advantage, leading to a 15-20% sales increase in a year.
- Raise product awareness within the target audience by 40% in one year.
- Improve the store image within one year, leading to a 10% increase in sales.
- Decrease potential customer’s resistance to purchasing its product, which can cause approximately 25% increase in sales within a year. This can be done by offering the new or untested product as a bonus rewards product from their Loyalty Program points.
Kudler’s marketing strategy include understanding the market characteristics, industry condition, resources, and different institutions. The company hires local experts that understand the business culture in France. Promotion of the product will be through different means of advertising, sponsorship, and social media outlets. This strategy’s strength is Kudler’s inherent support of its marketing objectives.
Pricing Strategy
There are no prices listed on Kudler Fine Foods website. Each area is independently priced to conform to the food’s affordability within the store region. French food is relatively less expensive than Italy, both in the restaurants and in the markets. To be competitive, Kudler must be priced comparatively. Where a good loaf of bread may cost €4,00 in Italy, the cost will be €3,00 in France. Bottles of wine will also be priced appropriately. The quality and demand of wine in France would mean a basic bottle of wine would be about €14,00 and fine wine could be much higher. In Italy, those same bottles would range from €9,00 and up making wine more expensive. Prices can be higher in both countries’ northern regions and must be less expensive in the southern regions (France, 2012, p. 2)(Italy, 2012, p. 2). This makes the areas unique in pricing. Therefore, the website will eventually offer the food prices based on the consumer’s Internet Protocol address and if they have a frequent shopper’s account listing their address.
Marketing Communication
Marketing Communication is a means for a company to notify potential consumers of company ideas, products, and services and to capitalize on consumers’ wants and needs. It can be accomplished through television, radio, internet, newspaper, flyers, social media, or word of mouth. For most products and services marketing communication should be tailored to fit the target population and not the straight extension method. This is true in the case of Kudler Fine Foods launching their new rewards program as straight extensions have been detrimental to other food providers (Kotler & Keller, 2007).
Kudler Fine Foods has reviewed sales reports, online surveys, and marketing research to consider such features including name, pricing, color, advertising style, and themes relevant to the French population. Based on the information obtained, they have decided to use a standard communication message and slogan everywhere. The only variation to the message will be language. Kudler’s communications will be directed to the significance of the message and the ability to control optimal mix will be completed (Dolak, 2010). The primary means for marketing communication will be radio and internet. This method was chosen since France prohibits alcohol to be advertised on television and alcohol is a large part of Kudler’s sales and their reward program. This method will also cater to the French as history has found most Europeans do not like straight to the point advertising. Instead, they prefer a personalized message (Kotler & Keller, 2006). The company’s marketing campaign will influence purchasing practices and will include events, public relations, and specialty services (Dolak, 2010). Kudler’s marketing communication will encompass technology such as Facebook, Twitter, social media, a mobile applications, and mass e-mails.
Distribution Strategy
The distribution strategy to be used by Kudler Fine Foods will be a multichannel approach. This will assist the store with financial resources, greater returns, and local contacts (Kotler & Keller, 2007). Kudler will be working with vertical wholesalers and other companies to distribute goods in Italy and France. Kudler will also form horizontal alliances by partnering with holistic and organic food manufacturers in both countries to sell goods (University of Phoenix, 2011). Kudler Fine Foods value network will aid in augmenting and delivering possibilities. Kudler will save time and money by using the assistance of intermediates to distribute goods. They will also benefit from the intermediates contacts and experience. This will be positive and will help overcome timing and placement gaps (Kotler & Keller, 2007). A large amount of Kudler’s products will be imported to their Italian location from France to increase exposure and product mix.
A pull strategy will be employed based on customer loyalty and satisfaction for the rewards programs success. To further enhance Kudler’s success, online services have been considered (Kotler & Keller, 2007). This will offer consumers of any country an opportunity to order specialty items with various home delivery options. This will be beneficial as it reduces storage fees, waste and expiration of products as well as overhead costs associated with providing items in a brick and mortar traditional store setting.
Financial Information
Marketing Research
Conclusion
Reference
De La Boursodiere, Teresa. (February 26, 2012). Personal knowledge based on degree in French modern language and culture and being of French heritage. Trinity Western University. Langley, BC.
Dolak, D (2010). Marketing Communications Mix: Sales Promotion. Retrieved from
http://www.davedolak.com/promo.htm.
Kotler, P., &Keller, K.L. (2007). A framework for marketing management (3rd ed.). Upper
Saddle River, NJ: Pearson Prentice Hall.
Kotler, P., &Keller, K.L. (2006). Marketing management (12th ed.). Upper Saddle River, NJ:
Pearson Prentice Hall.
University of Phoenix. (2011). Kudler Fine Foods. Retrieved from University of Phoenix,
Marketing 571 website.
