Kudler Fine Foods – Benefits and Drivers Proposal

Introduction

Kudler Fine Foods is a virtual organization demonstrated in a University of Phoenix simulation. As illustrated by Team B, authors of this paper, Kudler hired Team B as consultants whose mission is to assist them in becoming more creative and innovative. This work proposes a strategy for Kudler and illustrates analyses of how innovation, design, and creativity support Kudler’s organizational goals and objectives. This paper also identifies the internal and external drivers of innovation of Kudler Fine Foods.

Mission Statement and Vision Summary

Kathy Kudler, creator and owner, had a vision to offer customers the experience of shopping the world for fine foods in a one-stop convenience store. The store offers an extensive selection of quality-fresh ingredients and gourmet cooking tools at reasonable prices. Kudler opened its first location in La Jolla, California in 1998, and in 2000 opened the Del Mar location. Kudler’s latest store is located in Encinitas and opened in 2003 (Kudler Internet/Intranet Portal, n.d.).

The mission statement for Kudler is to “provide our customers the finest in selected foodstuffs, wines, and related needs in an unparalleled consumer environment. Our selections, coupled with our experienced, helpful, and knowledgeable staff, merge to offer each customer a delightful and pleasing shopping outing” (Our Mission, n.d., para. 2). Kudler provides these services by shopping the world for its products. Kudler’s staff purchases only handpicked products, thus assuring Kudler is the premier supplier of gourmet delights (Our Mission, n.d.).

Within the next 12 months, Kudler’s focus is to increase revenue and customer loyalty, reduce operating costs, and implement a sale system named the Frequent Shopper Program and cost reduction program (Strategic Objective, n.d.). Team ‘B’ mission is to compile creative and innovative ways of meeting Kudler’s organizational goals and objectives.

Creative and innovative goals and objectives

Kudler’s general concept of organizational function is an example of the company’s innovative and creative objective: because they specialize in gourmet products not easily found, Kudler is ahead of competitors. In addition to providing fine foods rarely available in grocery stores, studies are done to provide the most popular items on a regular basis. In addition, Kudler Fine Foods also changes the selection routinely to offer new and exciting products. This method of product selection is a creative and innovative way to gain customer satisfaction and loyalty while appealing to new customers, (Apollo Group, Inc., 2008).

In addition to product selection, Kudler Fine Foods also uses customer promotions and advertisement to produce customers and revenues. One customer promotion program is the Frequent Shopper Program to provide discounts and with new customer referral points. Kudler also promotes sales through local newspaper advertisements. Promotional offers are available in all locations at the same time to avoid advertisements that appear incorrect. While the advertisements serve as a tool to enhance business, the company also offers a website for customers to view products. Designs of the newspaper advertisements and website promote the same type of quality as the products offered, (Apollo Group, Inc., 2008).

Although Kudler Fine Foods started as a creative and innovative company and has maintained this concept with customer satisfaction and retention programs, Team B proposes the organization develop additional strategy for growth. The growth strategy for new customers currently is social networking, minimal advertisement, and word of mouth. Although word of mouth is a persuasive tool, Kudler Fine Foods needs to do more in order to gain additional business. New ideas for Kudler in business growth include additional advertising using billboards, sales promotions and special discount events, and targeting local marketing to identify needs and wants of area customers. These additional methods enhance the customer programs currently used, (Apollo Group, Inc., 2008).

Internal and external drivers of innovation

A SWOT (strengths, weaknesses, opportunities, threats) analysis exists for Kudler. This analysis provides insight to Team B of how to identify and manage Kudler’s internal and external driving forces in working toward innovation. Such forces include environment, supply and demand, and organizational behavior and strategy.

As listed in Kudler’s 2003 Strategic Plan, SWOT identifies Kudler’s strengths are small organization, minimal competition, variety, Kathy’s relations with staff, and repeat business. Weaknesses are that primary dealing is in perishables and high pay-roll. Opportunities are in areas for catering, increase in product line, and opportunity to be acquired. Threats are from gourmet shops and economical affects, (Strategic Objective, n.d., page 8).

Internal aspects relate to strength and weakness. Because Kudler is small, it is more manageable. Growth can only be effective if additional facilities operate under the same level of quality as the three existing locations. Notably, Kudler Fine Foods is based on Kathy’s personal vision, and therefore she personally staffs her locations for appropriate selection. By way of Kathy’s methodical selection and training, her mission of delivering quality products by knowledgeable employees builds loyal customer relations (Strategic Objective, n.d., page 8).

In order to provide this unusual level of informed and competent staff is the necessity of incentive to keep them motivated and available. This does not come cheap, however, and is a weakness for Kudler. Additionally, the risk in handling perishables is costly if inventory is not exhausted by a minimum of three fourths.

External effects on Kudler are opportunities and threats. Though local gourmet shops have not near the comparison of variety as Kudler provides, their locations do have familiar and local atmosphere for customers wanting an intimate or less complex option. Additionally, local shops are a less expensive alternative.

To counter this, Kudler is advised to implement strategy to reach customers who assume the Kudler Fine Foods experience is intimidating or inconvenient. This includes services of delivery, on-line orders, personal shoppers and advisors in areas of nutrition and likewise. Other opportunities are multiple levels of catering and special orders to the product line. Finally, Kudler was founded under a specific decree of standard; because it continues to uphold that standard makes it an opportune investment for a corporation to acquire. This will sustain the Kudler philosophy and enable growth.

Conclusion

Consulting Kudler Fine Foods with an innovation scheme revealed that Kudler already existed as a well-executed organization that demands an exemplary level of quality input and output. Therefore, Team B focused on simple concepts that had significant impact on the detriment and upward attainment of Kudler’s succession.

References

Kudler Internet/Intranet Portal, (n.d.). Kudler Fine Foods. Retrieved November 10, 2008, from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler/Internet/KudlerPort.htm

Our Mission, (n.d.). Kudler Fine Foods. Retrieved November 10, 2008, from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler/KudlerHome002.htm

Strategic Objective: Increase Loyalty and Profitability of Consumers, (n.d.). Kudler Fine Foods Sales & Marketing. Retrieved November 10, 2008, from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler/Sales/KudlerSM001.htm

Apollo Group, Inc. (2008). Kudler Fine Foods. Sales and marketing overview. Retrieved November 11, 2008, from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler/Sales/KudlerSM001.htm