Kudler Fine Foods

Channel and Pricing Strategies

Kudler Fine Foods decided that expanding its market will allow for foreign market growth as well as an increase in its profits. The product that Kudler Fine Foods wishes to launch is an assortment of fine wine in the country Germany. Germany’s culture and markets align with Kathy Kudler’s vision for Kudler Fine Foods. Germany ranks one of the top countries in the world for wine consumption and this reveals the need for Kudler Fine Foods to expand within Germany’s markets.

This paper will highlight international market choice, channel strategies, pricing strategies and pricing range for expansion success, and implementations of changing environmental factors. These will be the factors that have influenced Kudler Fine Foods decision to expand its market into Germany.

International Market Choice

When targeting Germany, developing countries can currently find most opportunities in supplying red table wine, which complements German domestic production “(Promising EU Export Markets for Wine,” 2011).” Domestic wine merchants serve a powerful role in Germany. This also characterizes the German wine market which also leads to competitive pricing. (Germany is the fourth largest wine market in the world. There is a per capita consumption that totals 24 liters per person. This factor influences the selected global market for Kudler Fine Foods. German wine consumption amounted to 20 million hectoliters in 2010 and remained rather stable since 2006 Eurostat, (2011). Even though, imported consumption decreased only by 2% in 2009, rose wines still increased “(Promising EU Export Markets for Wine,” 2011).”

Historically Germans used to be perceived as beer drinkers but today Germany’s wine consumption has increased over the years. This makes Germany a great choice to expand globally with our Kudler Fine Foods store. In Germany, sparkling wine also makes up 8.6% of the wine consumption in Germany. There will be a wide variety of wines...