About Virtual OrganizationsThe organizations that will succeed.docx

About Virtual Organizations
The organizations that will succeed in the twenty-first century
are those that can quickly and creatively solve problems -
problems within the company, problems within the market, and
the problems of its customers. The Virtual Organizations are a
unique and innovative set of learning tools specifically designed
to teach and assess problem solving skills while also giving the
student the ability to create unique and innovative solutions.
The Virtual Organizations bring theory to life by allowing the
student to take the theories learned in class and apply them in
realistic settings with realistic data to solve real-world
problems. Students accessing the Virtual Organizations have
access to the Internet and intranet sites of virtual businesses,
schools, hospitals, and cities. In most organizations, access to
sensitive information would be restricted, but users of the
Virtual Organizations have complete access to all information
including employee files, contracts, financial information, and
confidential memos. This gives the student a level of access that
they probably would not experience in their real companies and
gives them the information they need to practice the new skills
they are learning in their courses.
We have traveled the world to bring you an extensive collection
of domestic and imported wines and spirits.
Whether you want to mix the quintessential martini or find the
perfect wine to serve at your next dinner party, Kudler's is the
place to shop. You will find that our stores carry a wide variety
of spirits and at prices that will meet any budget.
While we are proud of our wide selection, we certainly don’t
want our customers to be intimidated, so each of our stores has

a Wine Steward who will be more than happy to assist you in
making your selection. We also hold monthly wine appreciation
classes so you can learn the nuances of our wines.
BAKERY
Each of our stores has its own modern European Style Bakery.
In the wee hours of the morning, our bakers begin mixing their
dough and creating fresh breads and pastries including fruit
tarts, table loaves, flat bread and the flakiest croissants in
Southern California.
Our breads and pastries are made from old world recipes and the
finest ingredients – Irish butter, organic eggs and unbleached
flour.
Kudler's bakery products do not contain preservatives.
MEAT & SEAFOOD
Our meat and seafood are procured from certified organic
producers.
The meat and seafood products are fresh and prepared in the
store to your order. The butcher shop in each store carries:
· Dry, aged beef
· A variety of poultry including turkey, duck, pheasant, quail
and chicken
· Lamb
· Home-made sausages – made without preservatives
· A wide variety of local seafood
· Live lobstersPRODUCE
Our produce department offers over 350 fresh fruits, vegetables,

herbs and spices.
We stock 16 different varieties of apples as well as a wide range
of tropical fruits from around the world.
Experienced cooks know that the right combinations of herbs
and spices will turn a good meal into a great meal. Herbs and
spices are most flavorful when they are fresh, and we carry the
freshest herbs and spices in the area.
Be sure to check out our Asian Specialty Produce department
where we carry the produce, herbs and spices that are the
staples of Asian cooking.
We know that our customers are interested in maintaining a
healthy lifestyle while also trying to live within their budgets.
We address these concerns by offering most of our produce in
both organic and non-organic varieties.
CHEESE & DAIRY
Our stores carry a complete line of the finest Dairy products
including Irish butter and organic milk.
We are known for our wide assortment of gourmet cheeses. We
carry over 250 varieties of cheese from 21 countries. Our stores
offer cheeses made from cow, goat and sheep's milk. We will
also special order any cheese you may want that we do not carry
in stock.
WINE
We have traveled the world to bring you an extensive collection
of domestic and imported wines and spirits.
Whether you want to mix the quintessential martini or find the
perfect wine to serve at your next dinner party, Kudler's is the
place to shop. You will find that our stores carry a wide variety
of spirits and at prices that will meet any budget.

While we are proud of our wide selection, we certainly don't
want our customers to be intimidated, so each of our stores has
a Wine Steward who will be more than happy to assist you in
making your selection. We also hold monthly wine appreciation
classes so you can learn the nuances of our wines.
LATEST NEWS
LA JOLLA, CA. -- Kudler Fine Foods announced plans to create
a frequent shopper program for their three stores in Southern
California.
Customers that participate in the program will receive news
about store events, featured products and sales. In addition, they
will be given exclusive offers on select merchandise and
discounts on cooking and wine classes. Owner Kathy Kudler
says, "We believe this will be a huge benefit to our most loyal
customers.
ABOUT KUDLER FINE FOODS
Who we are
Kudler Fine Foods is a local upscale specialty food store
located in the San Diego metropolitan area. We have three
locations (La Jolla, Del Mar and Encinitas). Each store has
approximately 8,000 square feet of retail space located in a
fashionable shopping center. We have the very best domestic
and imported fare at every location. Visit one of our locations
and browse our fine selection of:
· Bakery and Pastry Products
· Fresh Produce
· Fresh Meat & Seafood
· Condiments and Packaged Foods
· Cheese and Specialty Dairy Products
Our Mission

Our selections, coupled with our experienced, helpful and
knowledgeable staff, merge to offer each customer a delightful
and pleasing shopping outing.
We will provide this service because we "shop the world" for
our products; purchase only the finest of products; are highly
selective in acquiring our team members; and will go to
extensive lengths to assure that Kudler Fine Foods is the
purveyor of choice for customers aspiring to purchase the finest
epicurean delights.
Our History
Our founder, Kathy Kudler, was the Vice-President of
Marketing for a large defense contractor. Weary of the constant
travel and the pressures of corporate life, Kathy was looking for
other opportunities. As it happened, Kathy relieved her stress
through gourmet cooking and on a shopping trip for ingredients
for a gourmet meal, she suddenly realized there was an
opportunity for an upscale epicurean food shop in La Jolla.
Kathy developed a business plan, obtained financing and six
months later, on June 18, 1998, the first Kudler Fine Foods
opened.
Within nine months the store was at break-even and was
profitable for the year.
In 2000, a second store was opened in Del Mar and in 2003 our
third shop opened in Encinitas.
OUR LOCATIONSDel Mar
Flower Hill Dr. and San Andres Dr.
Curley Commons
Suite 146
Del Mar, CA 92014

(858) 555-0182
La Jolla
Torrey Pines Rd. and Prospect Pl.
Rosen Shopping Center
La Jolla, CA 92037
(858) 555-0138
Encinitas
West G St. and 2nd St.
Thompson Colonade
Encinitas, CA 92024
(760) 555-0155
SURVEY
Store hours are convenient for my shopping needs.
Very Strongly Agree
HTMLCONTROL Forms.HTML:Option.1
HTMLCONTROL Forms.HTML:Option.1 Very Strongly
Disagree
Neutral/Average
Store atmosphere and decor are appealing.
Very Strongly Agree

Disagree
Neutral/Average
A good selection of products was present.
Very Strongly Agree
Disagree
Neutral/Average
The merchandise sold is a good value for the money.
Very Strongly Agree

Disagree
Neutral/Average
Merchandise displays are attractive.
Very Strongly Agree
Disagree
Neutral/Average
I am very satisfied with the merchandise I bought.
Very Strongly Agree

Disagree
Neutral/Average
The customer service representatives were very courteous.
Very Strongly Agree
Disagree
Neutral/Average
The customer service representative was very knowledgeable.
Very Strongly Agree

Disagree
Neutral/Average
Overall, I am very satisfied with the store.
Very Strongly Agree
Disagree
Neutral/Average
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Sales & Marketing
Sales Plan 2007
The purpose of this sales plan is to help Kudler's managers
prioritize and focus resources in a way that reaches the
organization's objectives. During 2007, Kudler plans to increase
customer loyalty by offering added high-margin
services, leveraging the firm's better understanding of customer
purchase patterns, and providing more efficient
operations. New customers will be acquired through social
network marketing and word of mouth. The selling
function will support the expansion of services and programs to

increase loyalty and profitability of existing
customers and to gain new high-margin customers. The theme
for this year is outlined below. Let's make it a great
year!
Kudler Sales Plan 2007
Theme: Delight Our New and Existing Customers Through
New Customer Focused Programs
Better Information Management
Targeted Awareness Building
Increased Behind the Scenes Efficiency and Cost Containment
Sales Plan Contents
Part 1: Strategic sales objectives with corresponding financial
goals and roll-out schedules
Increased Behind the Scenes Efficiency
Part 2: Tactics by marketing mix, timing, and relationship to
strategic sales objectives
Product (existing products and new offerings)
Pricing (pricing, promotions, and discounts)
Promotions (customer and sales)
Place (expansion, emphasis on locations or customer regions)
Part 3: Customer Relationship Management Strategies and
Tactics

Kudler Fine Foods | Sales & Marketing: Sales Plan 2007
https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/K
udler2/in...
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Part 1: Strategic sales objectives with corresponding financial
goals and roll-out schedules
Strategic Sales Objectives
The objective of the sales organization is to successfully
implement programs designed to increase revenue and
decrease costs. The sales group will support the rollout of new
customer focused Programs, leverage customer
information to support sales growth of existing customers,
initiate targeted activities to recruit high-profit new
customers, and support operational cost-cutting efforts taking
place company-wide.
This section will review the following strategic initiatives:
Increased Behind the Scenes Efficiency
Return to Top
New Customer Focused Programs: Cooking Class Socials

We will initiate specialty cooking classes as a way to increase
the consumption of high-margin items among existing
customers and to build awareness, trial, and regular shopping
among new customers.
Kudler is offering parties in the store to show customers how to
prepare specialty foods. The draw for the
consumers is to be trained by world-renowned chefs, local
celebrities, other food experts, and even Kathy Kudler
herself, and to be invited to exclusive, upscale events. The
anticipated outcomes will be to increase the customer
purchase rate of high margin food and beverage items and to get
consumer to make an evening at Kudler Fine
Foods part of their social network. This increased time in the
store will increase the overall revenue per visit and
increase the frequency of visits to the store. Consumers will
receive multiple entries in high-ticket item contests by
bringing a friend to the parties. While the firm's preference is to
have the events in-store, guests can have Kudler
cooking classes at their home for a price premium. Programs
such as this encourage consumer loyalty and word-of
mouth marketing.
Role of the sales group: The sales group will actively promote
these programs to the existing customers and
targeted potential new customers in key high-income zip codes.
We anticipate that initially, the majority of
participants will be existing customers, however, over time, new
customers will participate in the programs. The
projected mix of existing and new customers is outlined in the
table below, along with the projected lift in revenue
resulting from the programs.
Return to Top

Cooking Class Socials
Quarter Description Existing Customers New Customers
Projected Revenue Lift
Q1
Direct mail re: classes.
18 Specialty Cooking Classes
90% 10% .75%
Q2 24 Specialty Cooking Classes 75% 25% 1.25%
Q3
Direct mail re: classes.
12 Barbeque Buster Classes
65% 35% 1.75%
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Q4
12 Customer In-Home Parties
50% 50% 3.75%

Total 7.50%
Return to Top
Better Information Management: Frequent Shopper Program
Our new initiative is tracking purchase behavior at the
individual customer level and providing high value incentives
through a partnership with a loyalty points program. The
customer purchase behavior patterns will help us refine its
processes and offerings to best satisfy their valued customers.
Price is not the primary differentiating factor for
Kudler consumers; these consumers are focused on quality and
finding specialized items. Therefore, rather than
providing discounts to the customers for their purchase
frequency like lower end markets, Kudler has partnered
with a loyalty points to provide customers with points which
can be redeemed for high end gift items, airline
first-class upgrades, or other specialty foods.
Role of the sales group: Sales will be trained on these programs,
including in-depth training on data analysis. This is
an important facet of our quest to delight the customer.
Return to Top
Frequent Shopper Program
Quarter Descrption Projected Revenue Lift
Q1
Employee-wide training session
Frequent shopper program rollout
.25%

Q2
Assessment and refinement of program
Frequent shopper promotion, increased customer satisfaction
.50%
Q3 Frequent shopper promotion, increased customer satisfaction
1.75%
Q4 Frequent shopper promotion, increased customer satisfaction
2.25%
Total 4.75%
Targeted Awareness Building: Direct Marketing and Word of
Mouth
Direct mail promotional literature will be sent to high-income
zip codes to solicit customers. These pieces will
contain information about the array of products and services
offered by Kudler. Kudler will be positioned as a place
to interact with others interested in exceptional quality foods
for entertaining and everyday use.
Role of the sales group: Provide input during the development
stages. Participate in the training sessions. Support
the roll out of the direct mail piece.
Increased Behind the Scenes Efficiency: Cost Cutting Initiatives
Kudler is now in a position to focus on internal (both front line
and behind the scenes) processes, and how those can
be improved to deliver increased value to the customer. From a
service perspective, we are benchmarking
Nordstrom department stores. In addition, an employee training

program and new software systems will facilitate
the effort. Marketing has encouraged the purchasing department
to find ways to reduce costs of ordering foods and
minimize the amount of food to be stored, while also having a
zero stock out policy. In response, purchasing has
developed a supplier relations program and has solicited the
help of marketing to help roll out the program.
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Role of the sales group: Support cost cutting efforts as needed.
Return to Top
Part 2: Tactics by marketing mix, timing, and relationship to
strategic sales objectives
Product
The frequent purchase program will give us valuable data on
customer purchase patterns. Beginning in Q1, sales
will work with purchasing to adjust the product offerings on
shelf to reflect the needs of our customers. This analysis
will evaluate frequently purchased items with their
corresponding profit margin and fit within the product mix.
Pricing
The promotions introduced during Q1 such as the frequent
purchaser and the cooking classes are designed to be

self-funding. We are using a cost-plus minimum pricing strategy
to hit our minimum 5% margin threshold,
combined with a market-based strategy to build in additional
margin around what the market is willing to bear.
Rather than offer discounts to our customer, we offer value
added services.
Promotions
Direct mail promotional literature will be sent to high-income
zip codes to solicit customers. These pieces will
contain information about the array of products and services
offered by Kudler. Kudler will be positioned as a place
to interact with others interested in exceptional quality foods
for entertaining and everyday use.
Role of the sales group: Provide input during the development
stages. Participate in the training sessions. Support
the roll out of the direct mail piece.
Return to Top
Place
For the sales department, our bonus is contingent, in part, on
the successful implementation of the customer
promotion programs discussed in this plan. If we meet 100% of
the targeted revenue each quarter for the cooking
class socials and the frequent purchaser program, then we
receive a 1.25% bonus above our base salary and
standard commission. If we meet our targets for every quarter,
we will earn an additional 2% bonus. This means
we have the potential to earn a bonus of up to 7% of our base
salary.
At this time, we are focusing on improving our existing

locations. However, sales is encouraged to actively consider
new ways that we can expand our business geographically in the
future.
Part 3: Customer Relationship Management Strategies and
Tactics
The frequent purchase program will give us valuable data on
customer purchase patterns. Beginning in Q1, sales
will work with purchasing to adjust the product offerings on
shelf to reflect the needs of our customers. This analysis
will evaluate frequently purchased items with their
corresponding profit margin and fit within the product mix.
ADMINISTRATION FINANCE & ACCOUNTING SALES &
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Marketing Overview
Kudler Fine Foods has experienced significant growth and is
now focused on expanding the services, improving
the efficiency of its operations and increasing the consumer
purchase cycle as a means to increasing the loyalty
and profitability of its consumers.
Strategic Objective: Increase Loyalty and Profitability of
Consumers
Expanding Services (Revenue Increase) – Kudler is offering
parties in the store to show customers
how to prepare specialty foods. The draw for the consumers is
to be trained by world-renowned
chefs, local celebrities, other food experts, and even Kathy
Kudler herself, and to be invited to
exclusive, upscale events. The anticipated outcomes will be to
increase the customer purchase rate
of high margin food and beverage items and to get consumer to
make an evening at Kudler Fine
Foods part of their social network. This increased time in the
store will increase the overall revenue
per visit and increase the frequency of visits to the store.
Consumers will receive multiple entries in
high-ticket item contests by bringing a friend to the parties.
While the firm’s preference is to have
the events in-store, guests can have Kudler cooking classes at

their home for a price premium.
Programs such as this encourage consumer loyalty and word-of
mouth marketing.
Frequent Shopper Program (Revenue Increase) – Kudler’s new
initiative is tracking purchase
behavior at the individual customer level and providing high
value incentives through a partnership
with a loyalty points program. The customer purchase behavior
patterns will help Kudler refine its
processes and offerings to best satisfy their valued customers.
Price is not the primary
differentiating factor for Kudler consumers; these consumers
are focused on quality and finding
specialized items. Therefore, rather than providing everyday
discounts to the customers for their
purchase frequency like lower end markets, Kudler has
partnered with a loyalty points program to
provide customers with points which can be redeemed for high
end gift items, airline first-class
upgrades, or other specialty foods.
Increased Efficiency (Cost Reduction) – Kudler's is now in a
position to focus on internal (both front
line and behind the scenes) processes, and how those can be
improved to deliver increased value to
the customer. From a service perspective, Kudler is
benchmarking Nordstrom department stores. In
addition, the firm is developing employee training programs and
integrating new software systems
to facilitate the effort. Marketing has encouraged the purchasing
department to find ways to reduce
costs of ordering foods and minimize the amount of food to be
stored, while also having a zero stock
out policy. In response, purchasing has developed a supplier
relations program and has solicited the

help of marketing to help roll out the program.
Kudler Fine Foods | Sales & Marketing: Marketing Overview
udler2/in...
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Historical Sales Data and Financials
Historically, Kudler Fine Foods has tracked information such as
dollar value and profit margin per transaction,
dollar sales and profit levels by day, and dollar sales and profit
margins by item. However, in an effort to
leverage the information to create a more intimate relationship
with their customers, the firm is integrating a
system to track customer purchase behavior over time. The firm
is in the process of developing this system
now.
The three department managers are encouraged to check with
their counterparts at the other stores on the
pricing, quality, and delivery of the merchandise they order.
They are also encouraged to combine orders
between their stores if they feel there would be a cost savings
resulting from ordering a larger quantity of a
particular item or multiple items.
Kathy also places purchase orders. Kathy’s purchases relate
mostly to unique, capital, or repair items that
might be required by an individual store or for items used by all
three stores, such as bulk Purchase Orders or
Receiving forms.
Prepared purchase order forms are either mailed, handed to

supplier salesmen, faxed to suppliers, or sent by
E-mail if acceptable to suppliers. Whatever the method used, a
purchase order form is always filled out initially
and becomes the key tracking and financial document for an
order.
Advertising
Advertisements are prepared for local newspapers by Kathy.
Advertised specials are offered at all three stores
simultaneously. Kathy coordinates the items on sale with the
store managers from each store during her
weekly operations review meetings to make sure adequate
supplies of merchandise will be on hand.
Merchandise can be shifted between stores should one store
have a higher demand of an item than another
store, time permitting.
Accounting
Accounting data is collected by the point-of-sale terminals
(cash registers) that are used in each store at
check-out to record all items, quantities, prices, taxes and totals
for all daily sales transactions.
Inventory Management
Excess inventory is always a concern since it represents
company monies being tied up in merchandise that is
not moving or generating further income. Excesses can also lead
to write-downs of the merchandise.
The department managers are responsible for maintaining high
customer service levels for the items they sell,
which means carrying higher levels of inventory, but not
excessive service levels. Kathy’s policy is that
adequate levels of inventory should be maintained to assure that
stock-outs do not occur more than 2-3 times
a year. This customer service level is discussed during Kathy’s

monthly operations review meeting and
adjustments to merchandise stocking levels made if warranted.
A customer service level of 95% has been a
general goal for a number of items carried. 95% means that 95%
of the time a customer will find merchandise
available in a store. 5% of the time there will be no merchandise
due to a previous stock-out. The store
decides on an item-by-item basis whether a rain check will be
offered customers if an item is out of stock.
Forecasting
Forecasting which items to carry and how much to carry in the
future has always been a challenge. Kathy and
her department managers utilize historical data on which items
and what quantities were sold in the last 2-3
years, especially on holidays. This provides an indication of
which items and what quantities to carry in the
future. Forecasts are basically an extrapolation of past history
to the future. In an increasing sales market, the
trend extrapolating forecast works fairly well. The difficulty has
always been in determining the forecast’s
turning points, from increasing sales to decreasing for example,
since significant errors can occur at these
points. This is a reoccurring topic in monthly operations review
meetings in which monthly sales are reviewed
for the last year and monthly forecasts prepared for the next
three months, a quarterly forecast for the quarter
after that, and for six months for the next six-month period after
that. The accuracy of this forecasting method
has not been as good as desired and has resulted in the
obsoleting of some merchandise and in offering others
udler2/in...

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at drastic discounts.
Merchandise Selection and Pricing
The Kudler stores are no different from any other store in that
business success is geared to being able to
provide total customer satisfaction. One way to satisfy
customers is to offer a changing selection of gourmet
foods as they become available since customers always appear
to be demanding something new. Kathy
considers one of her key responsibilities to be that of
identification of new gourmet items that can be offered
in her stores. To keep up with what’s available, Kathy monitors
what other gourmet foods stores are
offering, what’s being advertised in gourmet magazines, what is
being shown at gourmet conventions, and
what shows up on gourmet Web sites.
After finding some new and interesting items, Kathy usually
obtains a small amount of each item and
introduces them at one of her operations review meetings. The
managers attending the meeting get to
sample the items and to offer their comments, suggestions and
recommendations on whether to offer the
items or not.
In checking on all the new items, especially on what
competitors are offering, Kathy is also in a position to
determine what current selling prices for the items are. With
this information, Kathy and her staff then
discuss if and when merchandise prices should be changed and
by how much.

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udler2/in...
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Operations

There is no purchasing department in any of the stores although
standard purchasing procedures are in place.
Each of the three department managers in each store determines
requirements for the items their department
sells and places purchase orders directly with suppliers using a
purchase order form that is standard between the
three stores. It is the responsibility of the Department Managers
to obtain the best price, quality, and delivery
possible. They also receive and verify all orders in terms of
whether they received the correct items and
quantities and in undamaged conditions. Received items are
documented on an Order Received form and sent to
Accounting so that invoices for the items can be paid.
The three department managers are encouraged to check with
their counterparts at the other stores on the
pricing, quality, and delivery of the merchandise they order.
They are also encouraged to combine orders
between their stores if they feel there would be a cost savings
resulting from ordering a larger quantity of a
particular item or multiple items.
Kathy also places purchase orders. Kathy’s purchases relate
mostly to unique, capital, or repair items that might
be required by an individual store or for items used by all three
stores, such as bulk Purchase Orders or Receiving
forms.
Prepared purchase order forms are either mailed, handed to
supplier salesmen, faxed to suppliers, or sent by
E-mail if acceptable to suppliers. Whatever the method used, a
purchase order form is always filled out initially
and becomes the key tracking and financial document for an
order.
Advertising

Advertisements are prepared for local newspapers by Kathy.
Advertised specials are offered at all three stores
simultaneously. Kathy coordinates the items on sale with the
store managers from each store during her weekly
operations review meetings to make sure adequate supplies of
merchandise will be on hand. Merchandise can be
shifted between stores should one store have a higher demand of
an item than another store, time permitting.
Accounting
Accounting data is collected by the point-of-sale terminals
(cash registers) that are used in each store at
check-out to record all items, quantities, prices, taxes and totals
for all daily sales transactions.
Kudler Fine Foods | Operations: Supply Chain Overview
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Inventory Management
Excess inventory is always a concern since it represents
company monies being tied up in merchandise that is
not moving or generating further income. Excesses can also lead
to write-downs of the merchandise.
The department managers are responsible for maintaining high
customer service levels for the items they sell,
which means carrying higher levels of inventory, but not
excessive service levels. Kathy’s policy is that
adequate levels of inventory should be maintained to assure that
stock-outs do not occur more than 2-3 times
a year. This customer service level is discussed during Kathy’s

monthly operations review meeting and
adjustments to merchandise stocking levels made if warranted.
A customer service level of 95% has been a
general goal for a number of items carried. 95% means that 95%
of the time a customer will find merchandise
available in a store. 5% of the time there will be no merchandise
due to a previous stock-out. The store
decides on an item-by-item basis whether a rain check will be
offered customers if an item is out of stock.
Forecasting
Forecasting which items to carry and how much to carry in the
future has always been a challenge. Kathy and
her department managers utilize historical data on which items
and what quantities were sold in the last 2-3
years, especially on holidays. This provides an indication of
which items and what quantities to carry in the
future. Forecasts are basically an extrapolation of past history
to the future. In an increasing sales market, the
trend extrapolating forecast works fairly well. The difficulty has
always been in determining the forecast’s
turning points, from increasing sales to decreasing for example,
since significant errors can occur at these
points. This is a reoccurring topic in monthly operations review
meetings in which monthly sales are reviewed
for the last year and monthly forecasts prepared for the next
three months, a quarterly forecast for the quarter
after that, and for six months for the next six-month period after
that. The accuracy of this forecasting method
has not been as good as desired and has resulted in the
obsoleting of some merchandise and in offering others
at drastic discounts.
Merchandise Selection and Pricing
The Kudler stores are no different from any other store in that
business success is geared to being able to

provide total customer satisfaction. One way to satisfy
customers is to offer a changing selection of gourmet
foods as they become available since customers always appear
to be demanding something new. Kathy
considers one of her key responsibilities to be that of
identification of new gourmet items that can be offered in
her stores. To keep up with what’s available, Kathy monitors
what other gourmet foods stores are offering,
what’s being advertised in gourmet magazines, what is being
shown at gourmet conventions, and what shows
up on gourmet Web sites.
After finding some new and interesting items, Kathy usually
obtains a small amount of each item and
introduces them at one of her operations review meetings. The
managers attending the meeting get to sample
the items and to offer their comments, suggestions and
recommendations on whether to offer the items or not.
In checking on all the new items, especially on what
competitors are offering, Kathy is also in a position to
determine what current selling prices for the items are. With
this information, Kathy and her staff then discuss
if and when merchandise prices should be changed and by how
much.
MARKETING
TECHNOLOGY
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Kudler Fine Foods | Operations: Supply Chain Overview

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