Channel and Pricing Strategies 1 Running head: Kudler Fine Foods – Channel and Pricing Strategies

Kudler Fine Foods – Channel and Pricing Strategies Christian Bautista, Cynthia Lyon, Andy Reed, Jesus Santana, David Clark MKT 571 - Marketing January 31, 2011 Gregory Luce

2006. 671). 2006. International Market Justification – Product Launch Kudler Fine Foods offers organic and other premium products to its customers. ingredients. 2007). Vancouver is the largest city in the province of British Columbia and the third largest in Canada. The next section of the paper provides justification and data from research conducted for selecting Canada as the international market for the product launch. The company is following a waterfall approach. building on a niche market of purchasing the finest products will extend the fresh wide variety of seafood products by launching a new product offering of a sushi bar. 2007). The city has the largest deep-water port in Canada that serves as a connection for the Asia-Pacific trade. The established Kudler leadership. in which international markets enter sequentially (Kotler & Keller. p. and sushi products. The city has around 600. The financial and human resources developed and the expansion follows a sequence unlike the sprinkler approach. software. in which many countries initiated at once (Kotler & Keller. Kudler Fine Foods expands the company globally through agreements with channel partners in Vancouver Canada and the United States.KUDLER FINE FOODS – CHANNEL AND PRICING STRATEGIES Kudler Fine Foods – Channel and Pricing Strategies A local upscale specialty food store located in San Diego. p. 671). The final element of the paper provides a product launch channel and pricing strategy for entering the domestic and international markets. and biotechnology companies (City of Vancouver. accounting firms. In 2008 the Government of Canada 2 . Kudler Fine Foods chose Vancouver Canada to start its internationalization because its relatively strong economy. Senior management picked Vancouver Canada to sell its sushi products and other oriental products internationally. the city host offices for different industries such as mining. law firms.000 people and the metropolitan area around two million people (City of Vancouver. international banks. In addition.

670 Canadian dollars. Amadeus Wine Distributor services the Seattle Area in Washington State (Amadeus Wine. The company recently introduced a fresh sushi bar where customers order sushi and other oriental ingredients. The distributor has established channels to promote gourmet products including fresh sushi products. Kudler Fine Foods should partner with a large wine distributor. . This agreement eliminates trade barriers and investment restrictions between these three countries. The company wants to develop a 3 channel strategy to expand sales domestically. Kathy Kudler created Kudler Fine Foods because saw a need for gourmet food ingredients. The North America Free Trade Agreement (NAFTA) signed in 1994. properly stored. and establishes a free trade zone between the United States. Kudler could prepare the sushi.9998 U. 241). Channel Strategy – Domestic Companies developing a supply chain should first decide on a target market.S. Senior management is positive that the company will face minimum restrictions expanding the business to Vancouver. 2007. design backward from that point (Kotler & Keller. The target market for gourmet foods matches the market for wine drinkers. and immediately transported to the Seattle distributor. p. 2011). Expanding sales of its products to consumers throughout the United States should be done through distributors. Kudler Fine Foods is a small company of three stores with no access to a network in the United States.KUDLER FINE FOODS – CHANNEL AND PRICING STRATEGIES reported that the average income per family in Vancouver was $68. and Canada (Kotler & Keller. 673). Mexico. 2006. Kudler’s senior management wants to take advantage of the NAFTA agreement. This distributor could serve as the first rollout and a test. p. The exchange rate is $1 Canadian dollar for $0. Dollars In addition.

p. Kudler will need to create a seamless ordering system for the wholesale company to order enough for each customer. sushi sold inside Kudler Fine foods offers customers the opportunity for variety because the store makes the product to order. gourmet. Spatial 4 convenience is the degree of ease for customer purchasing the product. 245). The channel marketing partnership Kudler leadership developed with Stong’s Market in purchasing products is a natural transition of launching the Kudler sushi market strategy internationally. When designing a channel there are several service outputs to consider (Kotler & Keller. natural. and organic products (Stongs Market. p. and may wish to receive shipments every day or every other day. 248). Waiting time because of the freshness factor for the sushi the delivery channel must be fast.KUDLER FINE FOODS – CHANNEL AND PRICING STRATEGIES The sushi must be kept cold and fresh for delivery to the customer. Kudler Fine Foods agreed in principle with Stongs Market as a channel partner who share the same philosophy of delivering quality products and customer service. there will need to be some variety available but to the extent customers find in the store (Kotler & Keller. p. Channel Strategy – International Markets The initial Kudler Fine Foods international marketing launch of the sushi products and ingredients is Stong’s Market located in Vancouver. (2007). the channels are the company (Kotler & Keller. Companies need to select channel members carefully because to customers. The customer of a wine distributor is a restaurant or grocery store. 2007. Stong's Market offer a wide selection of products including all favorite brand name products as well as an extensive selection of unique. The partnership . Volume size is important restaurants and grocery stores purchasing sushi through the distributor will need enough products for the expected business. Canada. 245). 2011). Product variety is another service output. Kudler will make and ship these products to customers. 2007.

ready to eat sushi products. Therefore. The company must also constantly reinforce that its intermediaries are partners in the joint effort to satisfy customers (Kotler & Keller. . Price is the only marketing tool that produces revenue. and price cues. A Kudler sushi chef provides training to Stongs staff during the first six months to ensure staff produces high quality. the domestic. The training provides the staff knowledge in sushi ingredients to teach customers how to prepare sushi at home. (2007). Consumers process and evaluate prices using reference prices. which affect the price of a 5 product. A complete cost analysis provides the right price for Kudler Fine Foods sushi brand as it enters both. To promote the partnership and motivate the Stongs and Kudler team. Companies need to plan and implement careful training programs for their intermediaries. not currently offered. 248). a firm follows six steps: (1) select the pricing objective. 249). (2) determine demand. (3) estimate costs. Channel training is also a good competitive tool (Kotler & Keller. “In setting pricing policy. and international market. An initial marketing blitz through e-mails.Domestic and International Markets Pricing strategies require an assessment of current factors. price–quality inferences. (2007). a re-grand opening in the Stong’s Market location to introduce the new high quality sushi product offering to the customer. The right price necessitates in meeting the firm’s projected profits and goals while staying attractive to its consumers domestically and internationally. (4) analyze competitors’ costs. marketers need to recognize that consumers make purchase decisions based on what they consider to be the current price. Pricing Strategy . p. produced by Kudler Fine Foods and arrive fresh daily for the first six months. newspaper and gourmet magazines advertise the date of the re-grand opening to increase awareness of the new sushi product launch at Strong Market.KUDLER FINE FOODS – CHANNEL AND PRICING STRATEGIES provide Stongs customers an Asian product. p.

Kudler Fine Foods will then evaluate how much market share it can command based on its pricing strategy. Kudler Fine Foods has to establish itself with its brand and product differentiation to catch the attention of its customers and with a competitive price point (Kotler & Keller. 236). potential trading obstacle. In order for Kudler Fine Foods to expand its sushi product into the domestic and international market it has to evaluate the associated risks involved. Therefore. and (6) select the final price” (Kotler & Keller. The return on investment will totally depends on the firm undertaking Kudler Fine Foods sushi brand into these new markets. (2007). but it must also establish it brand. (2007). The firm must investigate the prices of its competitor’s sushi brands along with their pricing/marketing strategies and advertising campaigns. and market share (Kotler & Keller. and offers. Kudler Fine Foods must establish a sushi brand image. The firm has to take into 6 account the international currency value of Canada. Cost will be the core constituent on establishing a price for Kudler Fine Foods sushi brand and not just for customer consideration. revenue. and its distribution channels and liaison. p. That is why. when settling on a price. . (2007). This product differentiation will also have to be established by Kudler Fine Foods sushi brand too. the firm’s price structure has to be aligned with its market objectives of increasing customers.KUDLER FINE FOODS – CHANNEL AND PRICING STRATEGIES prices. domestically and into Canada will mean exposure to a larger marketplace. Kudler Fine Foods sushi brand must focus on staying competitive as it ventures into these two new markets. domestically and internationally will then determine/finalize the price. The number of sushi brands selling domestically and in the Canada has produced a product differentiation among the different brands selling sushi. Kudler Fine Foods sushi brand expansion. The demand for the firm’s sushi brand. The firm’s operation fixed costs and variable costs must be accurately ascertained during the price setting process. (5) select a pricing method. For this reason.

Conclusion The Kudler Fine Foods leadership market strategy to launch the new sushi product provides the research to meet expanding company objectives and goals. which will make it more attractive to its consumers domestically and in Canada through its marketing and advertising campaign. 7 . and Asian. diverse businesses. The justification for selecting Vancouver as the international location is the strong economy. The pricing policy is aligned with domestic and international target markets. The Kudler leadership will monitor the success of the product launch through reporting and frequent dialog with channel partners and adjust the strategy over 12 months. as the firm’s sushi brand enters these markets. Also the Kudler Fine Foods must keep in mind the government’s governing regulations and requirements. and Pacific trade connection. domestically and in Canada.KUDLER FINE FOODS – CHANNEL AND PRICING STRATEGIES and seek to earn an identity brand. The Kudler Fine Foods sushi channel market strategy is aligned with Stong’s Market internationally and Amadeus Wine Distributor domestically.

NJ: PearsonPrentice Hall. Stong’s market.gc. Retrieved January 28.d.htm Kotler. Statistics of Canada. (2007). New Jersey.L. Kudler Fine Foods. 2011.stongs. A Framework for Marketing Management (3rd ed. Retrieved January 27.stongs. K..htm#economy Government of Canada.statcan. Retrieved from http://www40.).com (2011). from http://www. 2011. Inc.).KUDLER FINE FOODS – CHANNEL AND PRICING STRATEGIES References Apollo (2006). Marketing Management (12th ed. (2007). www.). K. About Vancouver. P. City of Vancouver. 2011 from the University of Phoenix Marketing 571 8 . 2011 from http://www. Adadeus Wine Distributors.L. & & Keller. P.amadeuswinedistributors.cfm?fuseaction=content&c_id=4 www. Kotler. (n. NJ: Pearson-Prentice Hall. New (2009. Retrieved from http://vancouver. Retrieved January 28.

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