Niche marketing and customer involvement presentation
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Niche marketing and customer involvement presentation
- 1. Niche Marketing and Customer Involvement Presentation Jeff Werner MKT/431 Stephen Williams University of Phoenix February 27th, 2012
- 2. An Inside Look at Kudler Fine Foods Marketing Identifying Market Niches Unique Selling Point Strategies Areas Open to Change
- 3. Current Marketing Niche at Kudler Fine Foods Customer Focus on Quality Reduces Inventory Increased Loyalty and Profitability
- 4. Potential Market Niches Middle to Upper Income Bracket Stay At-home Wives/Moms
- 5. Current Strategies At Kudler Become A Social Hang Out Become A Family Experience
- 6. New USP Strategy For Kudler
- 7. Obtaining Customer Feedback Improvements to Website • Website to offer a blog for customer interaction • Put a suggestion box in website • Include a “Recipe” section on website
- 8. Positive Affects of Customer Feedback On the 4 P’s On the 4 C’s • Have Right Product • Have a Co-Created • Product In The Right Product Place • Provide Open • Product Priced To Sell Communication • Product Available At • Product Convenient The Right Time To Purchase • Cost = Value
- 9. Conclusion Create A Winning Marketing Niche Through Targeting, Having the Right Message, and Customer Involvement
- 10. References AJ’s Fine Foods. (2012). Purveyors of fine foods. Retrived from 222.ajsfinefoods.com/bistro.asp Apollo Group, Inc. (2011). Kudler Fine Foods. Shopping the world for the finest food. Retrieved from MKT/431 Small Business Marketing course website. Bplans. (2012). Gourmet Food sore business plan. Sarrica’s market. Retrieved from www.bplans.com/gourmet_food_store_business_plan/executive_summary_fc. php Gourmet Ads. (2012). Advertising to supermarket shoppers. Retrieved from www.gourmetads.com/blog/advertising-supermarkets-shoppers ZeroMillion. (2011). How to create your unique selling proposition. Retrieved from www.zeromillion.com/marketing/create-unique-selling-proposition.html
Editor's Notes
- A market niche defines how specific products are aimed at satisfying a specific market need. The following example is for Kudler Fine Foods, a company offering specific products aimed at satisfying the specific need of quality foods for their customers. Identifying those customer needs and their purchase behavior is essential criteria for deciding upon the product offerings to make available to the company’s most valued customers. The following presentation proposes potential marketing niches to use to identify targeted market segments and Unique Selling Proposition strategies Kudler can use to set their self apart from the competition. The presentation will conclude with ideas for change Kudler could use based on customer feedback.
- As part of Kudler’s marketing programKudler integrated a new software system to track buyer purchasing behavior, which over timehas helped them identify their most loyal customers, and focus on finding the specialized items to satisfy their needs. This marketing program allows the store to stock the most profitable items and reduce their food to be stored. Recognizing their customers’ needs has resulted in increased value to the customer, an increase in customer loyalty to the store, and increased revenue. Because quality is the customer need, rather than offering discounts, Kudler rewards their loyal customers through their Loyalty Points program, offering points towards redeeming high end quality merchandise.
- Secondary research revealed a business plan for an upscale grocery store named Sarrica’s Market which provides quality, hard to find grocery items from around the world. The market includes a brick and mortar store, along with a virtual online shopping website, offering nearly identical services as Kudler. Using the research the store had done, along with entrepreneurial insight, the following potential markets were identified. Not surprisingly the research revealed the middle to upper income bracket as ideal customers. The market could be segmented and targeted to a narrower market of housewives in middle to upper class neighborhoods, with the insight that these well-to-do wives would be likely to cook a gourmet meal. Research by Gourmet Ads supports this vision and reveals that the woman of the house is still the primary grocery shopper. The research indicates that radio advertising is the most efficient medium for reaching the stay at home wife that is commonly on the go running errands during the day.
- A current marketing strategy utilized at Kudler is offering in-store cooking classes which provides for customer involvement and many opportunities to learn more about the customer. The company goal is for the market to become a social hang out where people come and make an evening at the market, which Kudler can achieve by targeting the appropriate customer. Stay at home wives and mothers in the medium to upper income bracket would be an ideal client. People in the food & beverage industry also tend to have a taste for fine food and may appreciate the environment with a live chef instructing classes. Kudler’s goal to have the consumer make an evening at the restaurant, combined with the cooking classes, could be a night out for the family. Mom can enjoy her cooking class and wait on her family, serving them a gourmet meal she just prepared at the hands of world-renowned chefs. This increased time in the store may fulfill the company premise that the more time the consumer spends in the store will result in an increase in the consumer purchase rate, and resultin increased overall revenue to Kudler.AJ’s Fine Foods is an example of a company creating a social hang out at a fine food market succeeding, featuring 5 star chefs preparing gourmet meals in the bistro to be served on their elegant patios. Having expanded to 13 locations in Arizona they have found their niche. The market offers monthly social events, culinary classes, and wine tastings in addition to the normal social gathering spot for their customers.
- The marketing campaign could potentially move customers to shop at Kudler, however there is room for improvement. Another way to create value is to use a strategy known as a unique selling proposition. A unique selling proposition, also known as a USP, is a tactical and strategic marketing technique used to set a business apart from the competition and draw people to come to do business with the company.A powerful USP describes how it adds value and benefits the consumer and describes how the features of the product or service improve something for the consumer. A marketing campaign with the slogan “Quality meal ingredients for fast and healthy gourmet meals all day” for example, is a USP that delivers the value message they are lacking on their website. Their current USP of “Shopping The World For The Finest Food” describes only the benefit of the availability of fine food. Kudler could also position itself better as the leader in quality food products by placing a guarantee on their website, for example, that they provide “the most satisfying food experience, exceeding even the competitions’ expectations”.
- Kudler is interested in what the customer opinion is. To enhance customer satisfaction they conduct surveys annually on customer opinion on the quality of service, the store décor and display, and on product satisfaction. These surveys are conveniently available to the customer on the website. The surveys revealed customers thought the webpage lacked pictures, information, and was not easy to use. You can view the company website at www.kudlerfinefoods.info and see some of the changes made. It is full of great pictures and the shopping cart is easily maneuvered. The website still however lacks the ability of the customer to interact with the store and offer opinions or ideas. Customer feedback trends are thatthe customer wants to interact with the company andexpress their views and opinions. It is not enough to just take a survey, customers want feedback too, and they want it quickly.By obtaining this feedback the store could benefit by letting the customer help build the inventory of fine products, which would have a positive effect on company sales and therefore revenue. The company could track the success of using this method by simply looking at the effect of sales after one year on the products that customers suggested they stock.The company could also benefit greatly from customers seeing the company respond positively to customer opinion, which could be obtained by offering a blog on the company website. A suggestion box within the website could also be a good way to obtain data from customers. One goal of the company is to teach people about gourmet meals and a “Recipe” section within the website could offer this valuable information and entice customers to come in to buy these hard to find ingredients.
- By obtaining customer feedback a company will have the data needed to have the right products available to satisfy their needs and know where to promote the product so that it is available where the customer is most likely to find the product. This feedback will allow the company to know what the value of the product is to the customer so it is priced accordingly and is available when the customer wants to buy it.The market has shifted and customers are not necessarily as easy to satisfy. Customers have become an integral part of how a company must present their product offerings. Customer feedback is used to let the customer co-create the products they will purchase by openly communicating with the company and the product must be convenient for the customer to purchase. This collaboration with the customer allows the company to create value with the customer and the chance to maximize that value.
- Marketing niches allow a company to target their most valued customer and satisfy their needs. Identifying those most valued customers and connecting with them provides valuable feedback. Targeting the market niche and using a consistent unique selling proposition will help to build this clientele. Listening to the most valuable customers and responding to what creates value, for them, will result in the company offering products or services the customer wants and to have it available for them to purchase when, where, and how they want it.