Augy Case

Our products segmentation is for all market.

They are 40 designs of products. 1 5 design of the products are for woman adult market. 10 designs are mainly designs for teenagers and 5 designs are target for man’s . 10 designs of the products are cartoons they are pecially designs to meet the children market. Marketing Strategy There are two ways of how to market the product:- 1) Direct Sales – Stockist and Dealers Augy Enterprise markets the product by finding the authorized stockist. The stockist then will distribute the product to their existing and new agents.

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Then the agents will distribute the product to their own customer. [pic] 2) E-commerce sales. E-commerce sales is one of the method that being boom in this new and technology era. As a modern people they are no longer go to the supermarket and by product. By using this modern strategy agent market the Augys product via E-commerce. 0% of agents are using this strategy to market the products.

Promotion 1) Catalogs Augy has printed 10,000pcs of catalogs for volume I to promote the products to the customer.

The catalog will explain overall picture of the actual products and description about the features of the product to the customers. For next Volume (2) Augy Enterprise has forecasted to print 30,000pcs of catalogs. As from the database it is clearly stated that the customer has increased 100% than before. 2) Internet From the website customer especially the working customer will get the view about the product from their friends especially the agent. The agent will send the website to their customers to view.

So the agent will save time and cost as they do not need the see their customer personally.

The advantages of using the website also give the clear picture about the product to the viewers. TRADITIONAL MAKE TO ORDER SYSTEM [pic] Process Flow (1 . 1) Process flow 1. 1 shows the “Make to Order Process Flow.

Once receive order from customer, immediately Purchase Order will be issued to Production. Process of sewing, packing and delivery will take about 14 days after order received from customer. Company has identified the weakness of this system. The weaknesses have een listed as follows: C] Customer tends to cancel order due to long product lead time – 14 days.

Some of the customers cancel their order due to long waiting time. C] Inefficiency in servicing customer concluded into low sales.

Low sales means bad image to the company. Company will lose their revenue and will get loss. D Cannot compete with other company (competitor) where they can supply within 1 week lead time. In this market they are 27 competitors that produce similar product. The competitors are big company so they can provide their own transport. Augy is still young in this mar et k theretore i nas to tight and beat the competitors in terms of delivery time.

Augy is known as a Bumiputra company so it is a bad image for the company’s reputation if they unable to produce and deliver fast as what their competitors can deliver. D Production will have capacity problem if the order pattern drastically increased. Therefore the improvement plan should be implemented so that the production can be pre-planned and scheduled. The machine and the workers also not cramp to prepare the order. C] No forecast done – product made based on order. No stock is keeping is good for the company but business cannot grow with this kind of practice.