HelloFresh: Will Meal Kit Home Deliveries Still Be Hot Post-COVID-19?

CASE STUDY- HELLOFRESH: WILL MEAL
KIT HOME
DELIVERIES STILL BE HOT
POST-COVID-19?

Table of Contents
Executive Summary...............................................................................................................................3
INTRODUCTION .....................................................................................................................................3
Description of the Situation ........................................................................................................3
Problem Statement, Plan of analysis ..........................................................................................4
Analysis & Findings......................................................................................................................7
Proposed Solution to Problem (Approx. 600words)....................................................................9
CONCLUSION.......................................................................................................................................11
REFERENCES.........................................................................................................................................11

Executive Summary
The purpose of this report is to carry out situation of Hello Fresh and analyse
problems faced by them with describing the plan of analysis. The objective of analysis is to
discuss the issues faced by company and how the company raised the position to target
market. The purpose of this is to provide the solution to the overall problems faced by the
company during the pandemic as well as growth factors on increasing the sales more
effectively. It highlights the strategies and theories which company may follow for better
outcomes. The best fit solutions to the problems are also provided in the ways of suggestive
methods.
INTRODUCTION
The problems that can be identified from the case study of Hello Fresh are retaining the
customers and building the market share. There are several factors that created challenges
for the organization such as retaining their existing customers in the company in order to
increase the profitability of the business. The another concern for the business as building a
significant market share in the industry and improving its overall success. This problem is
one of the major reasons of the inefficiency of the organization to produce the desired
results and gain benefit in the industry. The Covid-19 has been beneficial for the
organization as it has had a major impact on the sales of the organization.
The main aim of this report is to explain the various issues and challenges that are
faced by the organization and complete analysis of how the company has achieved success
by improving their current performance in the industry. It will provide a detailed analysis of
the benefit that has been achieved by the business post Covid-19 pandemic.
The report will explain a brief description of the situation, problem statement and a
plan of analysis, analysis & findings, proposed solutions to the problem (Al Imam and et.al.,
2021).
Description of the Situation
Hello Fresh is an online grocery start-up which is providing its products and services in the
form of meal kits to the customers (Widyastuti and et.al., 2020). It aims at providing the fresh and
organically made food products to the customers at their home. It is one of the most popular meal
kit companies in the world and have expanded into several countries for increasing its overall market
share and gaining benefit in the competitive environment. The organization has a hierarchical
structure which explains that the work is done in a systematic way in the company at different levels
of hierarchy (Wichmann and et.al., 2021). It explains the management focus on organizing their
work appropriately by defining the policies and procedures at different levels. The mission of the
organization is to provide the customers with meal kits with delicious recipes and different flavours

in order to provide a better experience to them at their home (Bauer, 2020). The financial position of
the business has improved after the pandemic as the customers have started giving preference to
staying at their home and ordering things online. This trend has been beneficial for the company in
order to improve their previous position and gain better recognition in the industry. The organization
focused upon its marketing strategy and took the help of several social media influencers for
promoting the brand name in the market effectively. It has been useful for the business to increase
the engagement of the customers towards the products and services that are offered by the
business. The organization was able to reduce its marketing costs due to these aspects as after its
popularity the customers started getting used to the company. The customers who are conscious of
their health and safety and regularly order products from different websites are identified by the
business. These customers are then targeted in order for improving the productivity of the
organization and increasing its efficiency in providing better services to them (Sukharev, 2020).
Problem Statement, Plan of analysis
Hello fresh faced issues in improving their sales and managing as this service was not popular before
the pandemic (Wu and Li, 2018). Customers used to find it convenient to buy the ingredients
personally before the lock-down situation which had a negative impact on the sales of the company.
The organization faced challenges in order to manage retain their customers which had a negative
impact on the profitability of the business. It was difficult for the business to achieve a significant
market share on the industry due to these aspects which had a negative impact on its sustainability
(Bogers and et.al., 2019). Due to this issue the business was unable to grow in the industry and
increase its customers in the market. The special dietary needs and the packaging were the major
factors due to which the customers were discontinuing from their subscriptions from the
organization. The several discount offers provided by other meal kit suppliers had a negative impact
on the loyalty of the customers towards the business. The retention rate of the company was very
low, and they management had to give due consideration to these aspects for maintaining the
productivity of the company. The management required preparing effective strategies by analysing
the market situation in order to make effective changes in their current approach and increase the
profitability of the business (Thabit and Raewf, 2018).
There are different areas which are related with the several issues that are specified
above in the problems. The areas such as appropriate management of the strategic
development of the organization (Runting and et.al., 2018). The organization may have to
make several changes in their business strategy in order to improve their current
performances and have a better competitive advantage in the business. There are several
issues that have arisen in the strategic management of the business and has a negative
impact on the sustainability of the company. It is suitable for the organization to manage
the different elements of the finance department as it has the profits of the company have
experienced a reduction which may have a negative impact on the sustainability of the
company (Fuertes and et.al., 2020).
For Table below can serve as example: