Kudler Fine Foods Virtual Organization is a renowned fashionable specialty foodstuff store hyping the exceptionally finest domestic as well as imported foodstuffs within the San Diego urban area. In order to be successful, the company has to implement the strong corporate strategies, which form the organization’s foundation. Business strategy basically requires inputs of internal factors touching economic ideology alongside external factors of the surroundings in order to drive the actions of Kudler Food Company (About Kudler, n.d.). In developing business strategy, market research is vital as it helps in gathering useful information regarding customers or markets. In essence, market research offers valuable information with the aim of identifying and analyzing competition, market size, as well as market needs. Therefore, an environmental scanning both inside and outside the company is essential. This essay is aimed at carrying out marketing research on Kudler Fine Foods Virtual Organization and assessing how the research can be applied in coming up with marketing tactics and strategy of the company.
The marketing manager reports pragmatic valuation of the company’s environment features in order to sustain resolutions of the operation along with sales management. The process of environment examination is a significant step in characterizing victory of the tactical plan for attaining the growth purpose of the company. The majority of environmental factors which affect the company’s operation are external in nature, and they generally referred to as PESTEL. The internal factors are collectively called SWOT, and they are also essential to consider while doing market research.
Internal Environment Analysis
Market research recognizes the area of prospective customers in order to present them satisfactory services at practical price. The range of products presented at single place shopping is quite an important element to achievement of the company’s goals. The stocking products like wine, dairy, cheese, juices, seafood, meat, and bakery besides personalized services towards specific customer needs in controlled finances are the steps to attract clientele. The quality and freshness of foodstuffs has surpassed the anticipations of clients due to the fresh, high-quality, and upscale specialty foods (Parasuraman et al., 2007).
Further research shows most of the opportunities of Kudler Company towards the adoption of health and organic food approaching in its production lines, and this area requires more market research to find the amount of Americans, who have health problems simply because of consuming unhealthy foodstuffs. Recent studies show that 65% of the country’s adults suffer from being overweight and other 31% suffer from obesity. Therefore, there is an urgent need to change the diet of the country through the production and selling of healthy foods (65 percent of America’s adults are overweight, 2004). Moreover, much investing in promotional activities as well as enhancing the pre-existing aspects of product mix, and creating a strong brand will definitely make Kudler Foods Company a national competitor in terms of foodstuffs.
Unexplored market regions need to be considered, and the appropriate strategies like promotions and modification of prices ought to be carried out. The reason is that the already established brands in the market are strong, and therefore sound strategies are required to capture market share.
External Environment Analysis
Every market bears a competitive aspect in it even if it is a newly discovered one. Competition is a major factor in the external environment, and its main determinants include price, service, and brand strength. The pricing approach taken by Kudler Foods Company is determined by raw materials’ expenses, wages, transportation, competition and the surrounding community. Even though the prices are high, many people seem to prefer consuming Kudler’s products simply because of their superior quality and excellent services (Hamersveld, 2007).
The country’s economy hit hard by the resent world depression. Therefore, this area requires further market research in order to determine the current state of the country’s economy. The customers’ purchasing power was intensively affected by the economic recession. For that reason, the company has to be extra sensitive towards pricing as this is one of the main aspects to retain customers. The company fully implements the policies directed by the government towards counteracting the impact of recession through applying the reduced interest rates and economic stimulation packages as well.
In the business world, there are always global factors, which seem to influence the smooth functioning of trade, and they include opportunities, world trends, and trade agreements. Trade pacts usually may favor trade or hinder it, and Kudler Company strives to obtain its raw materials from regions, which offer quality resources with reasonable prices. The reason is that the international taxation seems to be the main obstacle as the U.S. government imposes heavy taxes on external raw materials. In such a way, it is supposed that companies should promote the local resource businesses. Therefore, the company must thoroughly research the reasonable and affordable sources of raw materials, for instance, compare the expenses when shipping raw materials from abroad and when getting them locally (Parasuraman et al., 2007).
Technology has been driving the world economy for the past ten years, and its inclusion in Kudler’s production and service delivery would really uplift its profit margin. The majority of foodstuff companies have ventures using e-commerce or rather offering online shopping opportunities, and since the citizens are always busy trying to build the economy, this area would be vital to capture the wide range of customers.
Marketing research, which basically entails scanning the business environment, is extremely essential to understand the market patterns as well as customers’ profile and afterwards weigh the opportunities and threats surrounding the company. Kudler Foods Company makes market research with the aim of developing a strong business strategy, which would enable the company to gain a competitive advantage in the market and therefore increase its market share and overall growth.