The Kudler Experiment

ECO/365
February 3rd, 20014
Michael Blakely

The Kudler Experiment
Kudler Fine Foods was established in 1998 by Kathy Kudler and fulfilled her dream of owning and operating a gourmet food store. By 2003 Kathy had three Kudler Fine Foods gourmet markets with each separated by sufficient geography to prevent the siphoning of customers from one store to another. The flagship store in La Jolla continues to do well while the second store in Del Mar has not performed as well. The most recently opened store in Encinitas has performed well.
Although Kathy indicates that she has no direct competition from other gourmet markets her business should not be considered a monopoly. There is indirect competition from the supermarkets in the area who offer gourmet food products, thus she is a niche player in the food service sector. Her business should be classified as an oligopoly as she does have few indirect competitors and the key to her success is her resources, both internally and externally. There is the potential to classify her business market structure as monopolistic competition due to the fact that there are many supermarkets competing for the same dollars and upward pricing will create a downward sloping demand curve. These supermarkets do offer gourmet food offerings along with the standard fare.
The strategic sales plan consists of four primary elements to attract new customers and retain existing customers. Kudler will be offering specialty cooking classes which will serve several purposes. Show customers how to prepare the specialty food items in the store led by world renowned chefs, local chefs, and encourage the purchase of the food items used in the demonstration. The cooking demonstrations will be offered for in home parties as well. Kudker is introducing a frequent shopper program to track customer spending habits and