Kudler Fine FoodsKudler Fine Foods is a local upscale specialty food store with three locations in the San Diego area. Each of these stores is located in a trendy shopping center with nearly 16,000 sf of retail space. These shops offer the best domestic and imported products, from organic products to specialty meats. After experiencing substantial growth, Kudler Fine Foods is now interested in increasing the loyalty and profitability of its consumers through expanding services, improving operational efficiency and increasing the consumer purchasing cycle (Apollo Group, 2004). Market research is the first step Kudler Fine Foods must take to increase customer loyalty and profitability. Marketing research is the process of defining a marketing problem and opportunity, systematically gathering and analyzing information, and recommending actions (Kerin, Hartley, Berkowitz & Rudelius, 2005). This is done with the aim of reducing risk and uncertainty thus enabling managers to make better decisions (Kerin, Hartley, Berkowitz & Rudelius, 2005). The market research process consists of five stages; define the problem, develop a research plan, collect relevant data, analyze the data, solve the problem (Armstrong & Kolter, 2005). Kudler Fine Foods defined its problem or goal as increasing consumer loyalty and profitability. To achieve this, they propose to increase revenue by expanding services and starting a frequent buyer program. They are also proposing a cost reduction measure through increasing efficiency (Apollo Group, 2004). As an expanding service, Kudler Fine Foods will conduct in-store events that teach customers how to prepare specialty foods. This luxury celebration will feature renowned chefs, local celebrities and other food industry experts to attract customers. The expected result of social holidays is to increase sales of high-margin food and beverages. Additionally, special discounts may be offered to customers who bring a guest to the event. It is believed that this program will encourage consumer loyalty and word of mouth marketing (Apollo Group, 2004). Kudler's frequent shopping program is designed to monitor consumer purchasing behavior and offer incentives to customers through a loyalty points program. Better understanding customers' purchasing patterns is one way Kudler believes it can refine its processes while maintaining customer satisfaction. Kudler Fine Foods understands that quality and selection are what matters most to its customers and that price is not a differentiating factor. Therefore, the loyalty points program will provide customers with redeemable points that can be used for high-end gift items such as airline upgrades or other specialty foods (Apollo Group, 2004).