The paper would discuss the importance of the market research for the development of effective segmentation and marketing strategies for one of the given grocery stores. The grocery store that would be highlighted and discussed throughout the paper is Kudler Fine Foods. Marketers these days heavily rely on the information gathered through the market research for taking certain decisions such as, producing a product, launching it, and promoting it.
Therefore, once reliable information through market research surveys such as, questionnaires, focus groups or informal interviews is gathered, it really pays off in the future. Marketing Strategies and Tactics Segmentation The segmentation – which means dividing the whole market into parts – of Kudler Fine Foods would be divided into two categories that would be targeted. First, those who are the customers that want fresh grocery items instantly at a reasonable price, while getting quality in the products and as well as the convenience.
Moreover, the customers who seek variety of products whether they are fruits, meat, seafood, bakery items, or wine. Secondly, the communities would be targeted especially, where the employees of the organizations live and as well as the customers. Employees are the key asset of Kudler Fine Foods and they must make sure to take care of them at any cost. Positioning Positioning is the phenomenon that where and how the product is actually perceived and seen by the customers.
The products of Kudler would be positioned in a way that they would be perceived in a very positive manner. That is the customers would have a perception about the products as those that are fresh, have great quality, and variety. Secondly, the supply chain network of the company would be delivering convenience and ease to the customers at their doorstep. Therefore, the positioning would be of higher level and the consumers would make a better sense of perception out of it. Now let’s discuss the model of consumer buying behavior and apply it over Kudler Fine Foods.
Theoretical Models and Strategies The model of consumer buying behavior has several steps that include the problem or need recognition for any product that the customer feel; searching of information for that particular product in the market; evaluation of alternatives or the different purchase options for the same type of product; making decision to purchase the selected product; and finally the post purchase behavior that involves customer delight, customer satisfaction or dissatisfaction (learnmarketing, n. d).
This model can really help Kudler Fine Foods to analyze and develop marketing strategies because the products or items that the company is providing are regularly demanded by the customers since they are of daily usage and must be present in their houses. As far as the analyses that need to be undertaken are concerned, one important analysis that must be undertaken is Stimulus-Response Model of buying behavior. This model includes marketing stimuli that includes product, price, place, and promotion (tutor2u. n. d).
Products would include different types of grocery products with great quality and freshness; price would be reasonable – not too high not too low because the company believes in satisfying customers with good quality and convenience; place would be the area where the products would be marketed and delivered and that is the community places where both the customers and employees live; and finally the promotion would be done through television ads, internet, social networking websites, newspaper ads, and flyers and brochures.
PEST Analysis Other factor analyses that must be undertaken are PEST analysis – Political, Economic, Social, and Technological. Kudler Fine Foods would shape its pricing and marketing strategy in accordance with the economic changes that is the demand of the products; bring on new marketing techniques with respect to the social norms and values; and would adopt new means of production and promotion by considering the technological changes that occur in the market. Competitive Intelligence
Battling the competition is very important for the company in order to survive in the growing market. Of course, many companies adopt competitive strategies in order to fight with the competitors and stay ahead of them; similarly, Kudler can also adopt certain competitive strategies to keep itself at the higher competitive level in the market. First of all, Kudler can adopt differentiation strategy – that is it would develop, maintain, and provide specific quality or excellence to the customers that other competitors don’t provide.
Another strategy would be to adopt cost leadership strategy – that is it would reduce it unnecessary costs that are borne by it in different parts of its operations such as, in logistics, in storing and distributing or supply chain process, and the production process. Moreover, the inventory control system would be redefined and implemented in order to make it the best fit for the company. Price Setting Considering all these costs, fixed and variable costs, the prices would be set up depending on the level or quality of services being provided.
In other words, the pricing would be like Product-based pricing, which is dependent over the quality or amount of products being delivered (Kotler, 2006). We would introduce different packages such as, low package, medium package, and premium package; all ranging from the level and of quality and amount of services that would cater to the children. Services that would differ in pricing include food, playing games, education and learning materials, and number of hours of care. Marketing Mix Therefore, Kudler Fine Foods can adopt wise and effective promotion tools with respect to the products and the places where they are to be launched.
Efficient efforts to harmonize the marketing mix of the products are the main backbone for their effective promotion. The elements of the marketing mix should be kept in line with each other, which meets the consumer’s demands rightly and at the right time, hence resulting in giving the company a competitive advantage over its competitors in promotion of brands. By adopting such strategies and disciplines, it would be much easier of the Kudler Foods to expand its business, bring in the efficiency in its operations, and enlarge the consumer purchases.
Conclusion Therefore, the paper discussed the importance of market research and the areas where Kudler Fine Foods can work on and improve its overall business, such as, by properly defining segmentation, targeting, and adopting suitable marketing strategies for its products. The targeting and positioning was defined for such products of the grocery store; moreover, it was also discussed that what is the consumer buying behavior process and how it can help the business analyze and develop suitable strategies.
The paper ended with the discussion over the competitive strategies that would be adopted by the company to remain at a competitive level, and the pricing of the products. References LearnMarketing. net. (n. d). Consumer Buying Behavior. Retrieved on July 30, 2010. From http://www. learnmarketing. net/consumer. htm Tutor2u. net. (n. d). Buyer Behavior: Stimulus-response model. Retrieved on July 30, 2010. From http://tutor2u. net/business/marketing/buying_stimulus_model. asp
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