QuestionQuestion

Readings: Haverland - New challenges for electric heating
Author: J.-L. Martinez, C. Breda
Translator: C. Blandel

Your mission

1. Analyze the current situation of the company: Only using the information and data provided, complete an Internal (Strengths and Weaknesses) analysis and an External analysis (Opportunities and Treats) – a SWOT analysis – and conclude with a few recommendations to increase the company market penetration.

2. Determine the profile of Haverland’s customers: Determine, from the information provided, what are the main characteristics of the customer profile. From your observation derive the main selling points.

3. Use data in Appendix II-2 (Sales) to calculate the seasonality of sales and draw the appropriate conclusions from this analysis. From the data given, compute the seasonal multiplicative factor for each month [seasonal factor for month M = (mean of same month for 2012 and 2013 / average monthly sales)]. Draw a conclusion regarding the seasonality.

4. Use Appendix II-2 (Sales) and I-1 (Market analysis) to determine Haverland’s estimated turnover for the year N+1, and comment on your results. Add the seasonal factors calculated in the previous question: Compute the sales trend (linear regression) for 2012 and 2013 and forecast sales for 2014 using both the linear regression results and the seasonal factors computed. Plot the estimated monthly sales for 2014 (N+1).

5. Design a loyalty strategy for dealers and fitters of electrical supplies (wholesalers, electricians). Define a strategy using social network and promotional tools to increase wholesalers’ and electricians’ loyalty.

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1.0 Analysis of the Current Situation
Haverland is looking to expand its market share in a competitive market that has well established industry players with many years of experience in the French market. Additionally, the electric heating industry in general is facing stringent regulatory pressure with the government taking a more proactive role to promote the adoption of green heating solutions. However, cost remains the core factor for consumers when it comes to choosing a heating solution, so there is still room for growth in the electric heating market in France. Haverland’s parent company has immense experience in the rest of Europe, and in international markets such as China, Japan, and Latin America as well as in its domestic market. This coupled with the company’s high quality product portfolio gives Haverland an opportunity to capture a sizable market share in the French market. This section presents Haverland’s strengths, weaknesses, opportunities and threats analysis based on the information presented in the case study.

1.1 Internal Analysis
Strengths
One of Haverland’s key strengths is having a parent company that has more than 40 years of experience in the manufacturing of electrical heating systems. Consequently, Haverland as a brand can capitalize on this experience to market its products in France. The second strength the company enjoys is its experience in international markets as it exports to more than 30 countries, therefore it can replicate the success it has had in these diverse markets by formulating a marketing strategy tailored to the French market. Another strength the company has is its network of direct customers that distribute its electric heaters. The company currently has 4000 direct customers. Additionally, the company enjoys a strong reputation in several international markets due to its high quality products, so its products are likely to be accepted in the market. Lastly, the company has energy-efficient heating systems that are synonymous with quality, design, comfort and convenience, to best meet consumers’ needs....

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