Augy Case Study

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Company Background

AUGY COLLECTION was established on October 2008 and has been registered under AUGY Enterprise. The company is located at No 14, Solok Kg Jawa 1, 11950 Bayan Baru, Pulau Pinang (10 minutes from Penang International Airport). Dealing with trading business, the company started with one type of products ( Bedsheet and Comforter ) only and the covered area is only factory and government office around Penang area. After 6 months company has develop more products and the current supplied products are as follows: 1) Bedsheet with/without Comforter - Standard

2) Bedsheet with/without Comforter – Ruffles
3) Quilt Bedsheet with/without Comforter
4) Curtain
5) Cushion Cover
6) Travel Mattress
7) Multipurpose Blanket
8) 2 in 1 Pillow Blanket
9) Pillow and Mattress Protector
10) Table Cloth
11) Table Runner
12) Dustbin Cover
13) Fridge Handle Cover
14) Blender Cover
15) Toaster Cover

Market Segmentation

99% of the customers are women. 90% of the customers are Malay. Our products segmentation is for all market. They are 40 designs of products.15 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 specially 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. 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 Augy’s product via E-commerce. 30% of agents are using this strategy to market the products.

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.



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 been listed as follows:

□ 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.

□ 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.

□ 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 market therefore it has to fight and beat the competitors in terms of delivery time....
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