Case 4: The company makeover
“A new strategic plan for the company HAZEL”
- problems with brand image, they see us as out-data
- catalogue is unattractive
- they are overwhelmed by the number of products we offer. We have to cut down the lines witch aren’t great money spinners and we have to produce more global and fewer products.
- they complain about the poor quality for our products
- they say there is a lack of new interesting lines
The sales representatives:
- they are not able to reorder popular items
- they do not receive the correct items how were ordered
⇨ we have to work on our supply chain ...view middle of the document...
- The order procedure is as old fashion as our image
- The order procedure (40pg) has to be filled-in by hand and mailed to the office => takes 30% of the sales reps their time (they can’t increase their sales and commission so it’s difficult to keep our reps.
- Hazel has the opportunity to cut down those product lines that aren’t profitable. Producing more global and fewer products.
- There seems to be a tendency in the market that teen-girls and men start to spend more and more money on make-up.
- Global production of the brand might reduce the costs. The disappearance of local brands creates economies of scale in marketing and R&D.
- Hazel is searching for possibilities to improve the supply chain management and distribution system.
- Expanding in Asia is important, the Chinese market is a growing market for luxury products.
- The market is moving and teenagers are a very important market for this sector. If they don’t like our products it will be catastrophically for the company.
Rebranding and improving Hazel’ s image
There will be a new product line for teenagers. Those products will have a new name so they don’t link the new products to our old products. We will make a new campaign to improve our image in the teenager market. For the campaign we can use a well-known person.
To reach the older people we will open stores with free consultancy of how you put make up on. Older people will be satisfied because many people starts with make up when they are 40 or older, because they didn’t needed it before.
A new market in make up is men’s grooming...