The Institutional Affiliation
The Kudler Fine Foods Virtual Organization is constantly working on improving its services and reaching a larger audience. The company has recently experienced a significant growth and continues looking for ways to increase the revenue and reduce the cost.
The firm has developed three main strategic objectives aimed at reaching the above-mentioned goals. The first objective refers to expanding the services and anticipates in-the-store parties. They will encourage loyal clients to come to the locations more often as well as attract new customers. The idea is innovative and exclusive, it will help to increase the revenue and encourage word-of-mouth advertising. The second objective is called the frequent shopper program and refers to the purchase behavior tracking. It ensures loyalty plan and special gifts program. The third objective is developed to reduce cost by an increased efficiency. It implies improving the internal processes, in particular, software, employee trainings, stock out and other policies.
The new system aimed at tracking the clients behavior is much more effective and integrated that the regular one used for measuring values and margins before. It is aimed at establishing closer relationship between the company and its audience, and making the communication processes efficient. An order form, for example, accelerates collecting of the information and helps to track the order better. Convenient advertising mechanism allows supplying the exact needed amount of items on sale to the needed locations and at the right time. Accounting is held by the special terminals which also contribute to the timely collection of data.
Excess inventory has always been one of the most problematic issues for many manufacturers. In order to save the company’s costs and resources it must make sure that stock-outs do not happen more than twice or three times per year. It should prevent from extra inventory levels and financial loss. The company must also determine the right correlation of items sold during a particular season (Christmas, Thanksgiving, other holidays and special occasions). It is impossible without well develop forecasting mechanism. Implementation of the three strategic objective implies an innovative forecasting method based on finding the right turning point such as in between of sales increase and decrease, etc. The last but not the least aspect is offering a merchandise that is different from what other similar businesses offer but still affordable and not too expensive. In order to determine the right cost of the product, it is important to compare it with the competitors offering and analyze factors which influence its market value.
Consumer data base is extremely useful and important since it allows to reach the needed group of clients in almost no time. Moreover, it allow to make sure that no single client is missing from the sight. Customer relationship management system helps to establish effective communication lines, results in clients loyalty, increases number of returning clients and positively influences the company's performance in general.
