Executive Summary
Hagen Style is a successful kitchen equipment company in Europe and its success owes to its direct marketing operations, along with its efficient distribution system. To Hagen Style, it is a good start that this company developed the appropriate marketing and distribution strategies which fit the market at that time. These Operation Strategies are maintained by effective Operations Management. For instance, without strict planning and management, the two distributions could be a mess and unable to realize fast delivery. The information system help analyse the orders and standardised packing progress ensures the product safety. The whole fulfilment operations are economical and efficient that minimize failure rick. This …show more content…
Through examining the case study, its key issues are identified and analysed such as limited distribution channel, operations performance, market strategy and geographic areas.
Through distribution channel, the goods are moving through its capacity to reach its destination (Qlutch Marketing, Inc., 2006). Although Hagen Style becomes a pioneer of direct market operation through the representatives, it is found out that their sales are declining because of its limited distribution channel.
IT systems, packing lines and dispatch arrangements are not designed to cope with small orders. Therefore, Hagen Style is having difficulties to maintain their operation performance in the market to support customers’ small orders and to adapt other distribution channels that supported customers’ small orders.
Goods are delivered through local representatives to the individual customer. Representatives are selling products to its customer by door-to-door and per their areas covered. But local location that is easily reach by the representatives such as office worker, communities, clubs etc. could possibly affect the organisational development by not being known globally, decrease its customers and steady declining of representatives that can lead as disadvantage to its competitors who is selling their products …show more content…
In Hagen Style case, they are using direct selling which is an old-fashioned market channel, traditional customers were moving towards using catalogues, tv shopping channels and buying from discount stores. But recently, Hagen has started selling a limited range of its products through selected discount stores and was planning to sell through a catalogue operation. Through these channels, the company can improve its products margins but the issue is with the existing operations, IT systems, packing lines and dispatch arrangements as they are not designed to cope with that kind of order where specialist carrier such as fedex would be great at that kind of delivery. So, the options were either to invest in new distribution operations which would be expensive and Hagen do not have that experience. Lafage cosmetics who sell their products same Hagen’s traditional way have been envious about Hagen’s fulfilment operation and have indicated that they would subcontract most of their order fulfilment to Hagen and in this case, Hagen will have the capacity to move their volume over to Hagen’s
Hagen Style is a successful kitchen equipment company in Europe and its success owes to its direct marketing operations, along with its efficient distribution system. To Hagen Style, it is a good start that this company developed the appropriate marketing and distribution strategies which fit the market at that time. These Operation Strategies are maintained by effective Operations Management. For instance, without strict planning and management, the two distributions could be a mess and unable to realize fast delivery. The information system help analyse the orders and standardised packing progress ensures the product safety. The whole fulfilment operations are economical and efficient that minimize failure rick. This …show more content…
Through examining the case study, its key issues are identified and analysed such as limited distribution channel, operations performance, market strategy and geographic areas.
Through distribution channel, the goods are moving through its capacity to reach its destination (Qlutch Marketing, Inc., 2006). Although Hagen Style becomes a pioneer of direct market operation through the representatives, it is found out that their sales are declining because of its limited distribution channel.
IT systems, packing lines and dispatch arrangements are not designed to cope with small orders. Therefore, Hagen Style is having difficulties to maintain their operation performance in the market to support customers’ small orders and to adapt other distribution channels that supported customers’ small orders.
Goods are delivered through local representatives to the individual customer. Representatives are selling products to its customer by door-to-door and per their areas covered. But local location that is easily reach by the representatives such as office worker, communities, clubs etc. could possibly affect the organisational development by not being known globally, decrease its customers and steady declining of representatives that can lead as disadvantage to its competitors who is selling their products …show more content…
In Hagen Style case, they are using direct selling which is an old-fashioned market channel, traditional customers were moving towards using catalogues, tv shopping channels and buying from discount stores. But recently, Hagen has started selling a limited range of its products through selected discount stores and was planning to sell through a catalogue operation. Through these channels, the company can improve its products margins but the issue is with the existing operations, IT systems, packing lines and dispatch arrangements as they are not designed to cope with that kind of order where specialist carrier such as fedex would be great at that kind of delivery. So, the options were either to invest in new distribution operations which would be expensive and Hagen do not have that experience. Lafage cosmetics who sell their products same Hagen’s traditional way have been envious about Hagen’s fulfilment operation and have indicated that they would subcontract most of their order fulfilment to Hagen and in this case, Hagen will have the capacity to move their volume over to Hagen’s