Since the beginning of the business, much of decision making had been based on Kathys intuition and on very little marketing research. For instance, the choice of the stores locations had been based exclusively on the local population number, its growing rate and median house price. Neither demographic nor psychographic research was carried out to support the decision.
Respectively the 2003 and the 2006 business and sales plans do not show evidence of market research investigating market trends in the premium food industry or eating habits of the San Diego residents.
This lack of information is also clearly evident in the opportunity section of the SWOT analysis, posted in the 2003 business plan. The SWOT analysis attempts to identify and evaluate an organizations capabilities (strengths and weaknesses) and compare these to the problems and opportunities the organization faces in the external environment (Kotler & Keller, 2006).
Kudler SWOT only reports opportunities internal to the organization, presenting not much evidence of environmental scanning or competitor analysis.
Particularly vital to the SWOT is the analysis of the barriers to entry and availability of substitutes that should have been identified by Kudlers SWOT analysis to better forecast profits and anticipate competitive advantage.
There is also no evidence, in both strategic plans, of segmentation, positioning and targeting. Kudler has to understand that decisions concerning strategy cannot be made until there is a clear understanding of whom their products are aimed at and how the products will fit into customers lives. Segmentation is particularly important to improve the organization ability to capitalize on marketing opportunities, choosing the appropriate price and promotion. Marketing literature identifies a variety of benefits for businesses following a segmentation approach. It ensures that the organization concentrates its marke View More »