SITUATION:
Bob Bennett is the founder of the startup MicroFridge Inc, which sells the product MicroFridge designed for “home away from home” market. The product is a compact refrigerator/freezer which has a microwave oven attached on the top, with its relative low power consumption and multi utility it has gained popularity in institutional market.
Initially, MicroFridge approached Japanese manufacturing company Samyan to build its product, they manufactured the refrigerator/freezer at Mexico and microwave at London and Singapore. The shipments received independently were assembled at San Diego, California. The shipment of products are channeled according to the orders received from the customers. Samyan R&F have made an agreement to manufacture all MicroFridge products until July 1995. But later in 1994, MicroFridge joined hands with Korean Company Daewoo for manufacturing.
PROBLEMS:
Among few problems that can be analyzed by going through the case, the following are most important to discuss:
Time consuming method followed in End Product Assembly line of MicroFridge.
No Emphasis on Advertising and Promotional Strategy of MicroFridge.
ANALYSIS:
For assembly line and delivery of the end product, MicroFridge followed a tedious distribution channel. In order to increase their market share they should have adopted a proper channel distribution. The Microwave coming from Mexico & refrigerator from Singapore & London and
the independent products assembling at San Diego, California and finally delivering to the customer, all this is time consuming, increases work force and needs internal & external supervision. By implementing an effective logistics methodology, a better distribution channel can be adapted.
Promotion and Advertising are pivotal tools in popularizing the product among the customers in the market. But there is no mention of promotion or advertising in the case. Even though MicroFridge is targeted only to