Logitech Learning From Customers To Design A New Product Case Study Help

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Logitech Learning From Customers To Design A New Product Case Study Help

Logitech Learning From Customers To Design A New Product is presently among the most significant food chains worldwide. It was founded by Ivey in 1866, a German Pharmacist who initially introduced "FarineLactee"; a mix of flour and milk to feed babies and reduce mortality rate. At the same time, the Page brothers from Switzerland likewise discovered The Anglo-Swiss Condensed Milk Business. The 2 became rivals in the beginning however later on merged in 1905, resulting in the birth of Logitech Learning From Customers To Design A New Product.
Business is now a global company. Unlike other multinational companies, it has senior executives from various nations and attempts to make choices considering the whole world. Logitech Learning From Customers To Design A New Product presently has more than 500 factories worldwide and a network spread across 86 nations.


The purpose of Logitech Learning From Customers To Design A New Product Corporation is to enhance the lifestyle of individuals by playing its part and supplying healthy food. It wants to help the world in forming a healthy and better future for it. It also wishes to motivate individuals to live a healthy life. While making certain that the company is being successful in the long run, that's how it plays its part for a much better and healthy future


Logitech Learning From Customers To Design A New Product's vision is to provide its clients with food that is healthy, high in quality and safe to eat. It wishes to be innovative and simultaneously comprehend the requirements and requirements of its customers. Its vision is to grow fast and provide products that would please the requirements of each age group. Logitech Learning From Customers To Design A New Product pictures to establish a well-trained workforce which would help the company to grow


Logitech Learning From Customers To Design A New Product's objective is that as currently, it is the leading company in the food market, it believes in 'Great Food, Good Life". Its mission is to provide its customers with a variety of choices that are healthy and best in taste too. It is focused on providing the very best food to its clients throughout the day and night.


Logitech Learning From Customers To Design A New Product has a wide variety of products that it uses to its consumers. In 2011, Business was noted as the most rewarding organization.

Goals and Objectives

• Remembering the vision and objective of the corporation, the company has laid down its goals and goals. These objectives and objectives are listed below.
• One goal of the company is to reach zero land fill status. It is pursuing absolutely no waste, where no waste of the factory is landfilled. It motivates its staff members to take the most out of the by-products. (Business, aboutus, 2017).
• Another objective of Logitech Learning From Customers To Design A New Product is to lose minimum food throughout production. Most often, the food produced is wasted even before it reaches the clients.
• Another thing that Business is working on is to improve its packaging in such a way that it would help it to lower the above-mentioned issues and would also ensure the delivery of high quality of its products to its consumers.
• Meet worldwide standards of the environment.
• Construct a relationship based upon trust with its consumers, business partners, employees, and federal government.

Critical Issues

Just Recently, Business Business is focusing more towards the strategy of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW method. The target of the company is not attained as the sales were anticipated to grow greater at the rate of 10% per year and the operating margins to increase by 20%, given in Exhibit H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may lead to the declined earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based on the idea of Nutritious, Health and Health (NHW). This technique handles the concept to bringing modification in the client preferences about food and making the food things healthier concerning about the health problems.
The vision of this method is based on the key method i.e. 60/40+ which just indicates that the items will have a rating of 60% on the basis of taste and 40% is based on its dietary value. The items will be produced with additional nutritional value in contrast to all other items in market getting it a plus on its nutritional material.
This strategy was adopted to bring more yummy plus nutritious foods and drinks in market than ever. In competition with other companies, with an intent of keeping its trust over clients as Business Business has actually gained more relied on by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are decreasing with increasing real amount of costs reveals that the sales are increasing at a higher rate than its R&D spending, and enable the business to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This indicator likewise reveals a thumbs-up to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing financial obligation ratio posture a danger of default of Business to its financiers and might lead a declining share prices. In terms of increasing financial obligation ratio, the company needs to not invest much on R&D and should pay its existing financial obligations to decrease the risk for financiers.
The increasing danger of investors with increasing debt ratio and declining share rates can be observed by substantial decrease of EPS of Logitech Learning From Customers To Design A New Product stocks.
The sales growth of company is likewise low as compare to its mergers and acquisitions due to slow understanding building of customers. This slow development also prevent business to more spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Keep in mind: All the above analysis is done on the basis of computations and Graphs given up the Exhibitions D and E.

TWOS Analysis

2 analysis can be utilized to obtain different strategies based on the SWOT Analysis given above. A brief summary of TWOS Analysis is given in Display H.

Strategies to exploit Opportunities using Strengths

Business ought to introduce more ingenious items by large amount of R&D Costs and mergers and acquisitions. It might increase the marketplace share of Business and increase the revenue margins for the company. It could also offer Business a long term competitive advantage over its competitors.
The global expansion of Business must be concentrated on market capturing of establishing nations by expansion, attracting more consumers through customer's commitment. As establishing countries are more populous than developed countries, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisLogitech Learning From Customers To Design A New Product needs to do careful acquisition and merger of organizations, as it could affect the customer's and society's perceptions about Business. It must get and merge with those companies which have a market track record of healthy and nutritious business. It would enhance the understandings of consumers about Business.
Business needs to not only invest its R&D on development, rather than it needs to likewise focus on the R&D costs over examination of cost of different healthy items. This would increase expense efficiency of its items, which will lead to increasing its sales, due to declining prices, and margins.

Strategies to use strengths to overcome threats

Business must move to not just establishing however likewise to industrialized nations. It needs to broaden its circle to numerous countries like Unilever which operates in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It ought to acquire and merge with those nations having a goodwill of being a healthy company in the market. It would also enable the business to use its prospective resources effectively on its other operations rather than acquisitions of those companies slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based upon 4 aspects; age, gender, earnings and profession. For instance, Business produces a number of products related to infants i.e. Cerelac, Nido, etc. and associated to adults i.e. confectionary items. Logitech Learning From Customers To Design A New Product products are rather inexpensive by almost all levels, but its significant targeted customers, in regards to earnings level are middle and upper middle level clients.

Geographical Segmentation

Geographical segmentation of Business is composed of its presence in practically 86 nations. Its geographical division is based upon 2 primary aspects i.e. typical income level of the consumer in addition to the environment of the region. For instance, Singapore Business Company's division is done on the basis of the weather of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and life style of the customer. For instance, Business 3 in 1 Coffee target those clients whose life style is rather busy and do not have much time.

Behavioral Segmentation

Logitech Learning From Customers To Design A New Product behavioral division is based upon the attitude understanding and awareness of the client. Its extremely healthy products target those clients who have a health conscious attitude towards their consumptions.

Logitech Learning From Customers To Design A New Product Alternatives

In order to sustain the brand name in the market and keep the customer intact with the brand name, there are 2 choices:
Alternative: 1
The Company needs to spend more on acquisitions than on the R&D.
1. Acquisitions would increase total properties of the company, increasing the wealth of the company. Nevertheless, spending on R&D would be sunk expense.
2. The company can resell the obtained units in the market, if it stops working to implement its strategy. Nevertheless, quantity spend on the R&D could not be revived, and it will be considered totally sunk cost, if it do not offer potential results.
3. Investing in R&D offer sluggish development in sales, as it takes very long time to introduce a product. However, acquisitions provide fast results, as it offer the company currently developed item, which can be marketed not long after the acquisition.
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the company to face misconception of consumers about Business core worths of healthy and nutritious items.
2 Big spending on acquisitions than R&D would send a signal of business's inadequacy of developing ingenious products, and would outcomes in consumer's frustration.
3. Big acquisitions than R&D would extend the line of product of the company by the items which are already present in the market, making business not able to introduce brand-new ingenious products.
Alternative: 2.
The Business ought to spend more on its R&D instead of acquisitions.
1. It would allow the business to produce more innovative products.
2. It would provide the company a strong competitive position in the market.
3. It would enable the business to increase its targeted customers by introducing those products which can be provided to an entirely new market segment.
4. Innovative items will supply long term benefits and high market share in long run.
1. It would reduce the profit margins of the company.
2. In case of failure, the whole costs on R&D would be thought about as sunk cost, and would impact the business at large. The threat is not in the case of acquisitions.
3. It would not increase the wealth of business, which could supply an unfavorable signal to the financiers, and might result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial costs on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to introduce brand-new innovative items with less risk of converting the costs on R&D into sunk cost.
2. It would supply a positive signal to the financiers, as the overall properties of the company would increase with its substantial R&D spending.
3. It would not affect the profit margins of the company at a big rate as compare to alternative 2.
4. It would supply the company a strong long term market position in regards to the company's total wealth in addition to in terms of innovative products.
1. Threat of conversion of R&D costs into sunk expense, higher than alternative 1 lower than alternative 2.
2. Danger of misconception about the acquisitions, higher than alternative 2 and lower than option 1.
3. Introduction of less variety of innovative items than alternative 2 and high variety of innovative items than alternative 1.

Logitech Learning From Customers To Design A New Product Conclusion

RecommendationsBusiness has actually remained the leading market player for more than a years. It has institutionalized its methods and culture to align itself with the market modifications and customer habits, which has eventually enabled it to sustain its market share. Business has actually established significant market share and brand name identity in the metropolitan markets, it is advised that the company should focus on the rural locations in terms of establishing brand commitment, awareness, and equity, such can be done by producing a specific brand name allotment strategy through trade marketing tactics, that draw clear distinction between Logitech Learning From Customers To Design A New Product items and other rival items. Additionally, Business must utilize its brand name image of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will permit the business to establish brand name equity for freshly introduced and currently produced products on a higher platform, making the efficient use of resources and brand name image in the market.

Logitech Learning From Customers To Design A New Product Exhibits

PESTEL Analysis
Governmental assistance

Transforming criteria of global food.
Boosted market share. Altering perception towards much healthier products Improvements in R&D and also QA departments.

Intro of E-marketing.
No such impact as it is beneficial. Worries over recycling.

Use of sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest possible considering that 9000 Greatest after Service with less growth than Business 3rd Least expensive
R&D Spending Greatest since 2001 Highest possible after Company 7th Least expensive
Net Profit Margin Highest considering that 2005 with quick growth from 2005 to 2011 As a result of sale of Alcon in 2015. Almost equal to Kraft Foods Unification Almost equal to Unilever N/A
Competitive Advantage Food with Nourishment as well as health and wellness factor Greatest number of brands with sustainable techniques Biggest confectionary and also processed foods brand name in the world Biggest milk products and also bottled water brand name in the world
Segmentation Center as well as upper center level consumers worldwide Private customers together with household group Every age as well as Income Client Teams Center and also top middle degree consumers worldwide
Number of Brands 2nd 1st 7th 5th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 83897 277715 562825 262845 498413
Net Profit Margin 1.97% 1.26% 47.85% 3.21% 67.34%
EPS (Earning Per Share) 23.49 1.84 3.54 1.31 83.48
Total Asset 851996 394138 974416 654921 12333
Total Debt 27857 56941 69419 92494 72432
Debt Ratio 41% 93% 84% 51% 83%
R&D Spending 6637 3338 7383 1269 2851
R&D Spending as % of Sales 7.36% 4.78% 3.56% 1.58% 7.29%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations