HelloFresh Case Study: Strategic Analysis of Sustainability and Growth

This report presents a case study analysis of HelloFresh, a meal kit delivery company based in Germany. It identifies challenges the company faces, including sustaining performance after the COVID-19 pandemic, managing increasing competition, and addressing sustainability concerns related to packaging and resource utilization. The report reviews relevant literature on business sustainability, proposes solutions such as using eco-friendly materials and improving supply chain efficiency, and suggests an action plan for sustainability. It also touches upon the competitive landscape and the importance of consumer awareness regarding environmental issues, highlighting strategies employed by competitors like Blue Apron. The analysis aims to provide insights into how HelloFresh can maintain its market position and improve its sustainability practices.

Case Study Analysis

Executive summery
The presented report is based on the analysis of the case study of the HelloFresh company
which is located in the Germany . the presented report highlighted that the organizations facing
various issues in different marketplace. in order to evaluate the situation the report mention
the complete description of the issues in adequate manner. apart from the report indicate that the
sustainability of the resources is the major for the business. in context to that the study highlight
and present the plan for dealing in with effective as well as efficient manner. furthermore it
deliver the competitive advantages in an appropriate manner for the success of the business
enterprises,. The organisation take various initiative steps for improving the image of the
company in domestic as well as international marketplace. the study determined the ways due
to which the organisation is able to survive in the market and acquire the profit from the
marketplace. furthermore the report shade a light on the market shares of the company which
the organisation is able to boost during the pandemic situation. In context to that the the report
proposed a solution that company can used for boosting the sales of the company .

Table of Contents
Introduction......................................................................................................................................4
MAIN BODY..................................................................................................................................4
Description of the situation..........................................................................................................4
Problem statement, plan of analysis............................................................................................5
Statement of the problem determine in case.....................................................................5
Proposed plan of analysis..................................................................................................6
Relevant literature review..................................................................................................6
Competitive analysis..........................................................................................................8
Analysis and findings..................................................................................................................8
Assessment of the current position facing HelloFresh......................................................8
Proposed solution to the problem..............................................................................................10
Action plan for Sustainability..........................................................................................11
Conclusion.....................................................................................................................................12
REFERENCES..............................................................................................................................13

Introduction
The present report will be based on the Hello-fresh organization which is located in the Berlin,
Germany,. The organization provides the wide range of delicious meal boxes. The product of the
company contains the package ingredients in a proper manner to satisfy large numbers of the
customers in effective as well as efficient manner. The organization make sure that it deliver the
fresh and delicious food to the customers in domestic as well as international marketplace. The
organization aim to grow higher and increase the profitability and productivity in effective as
well as efficient manner. With the assistance of marketing and promotion the organization is able
to increase the awareness of product and services (Aslaksen, Hildebrandtand Johnsen2021). Due
to that the customers of the organization is able to approach the productivity of the company. In
the current situation of the cricoid 19 the organization is able to enhance the market shares of the
company as the association provide the meal kit delivery services to the customers.
The sustainability is one of the affecting element which decrease the growth of many businesses.
In context to that while manufacturing and producing the product and services of the company
the organization make sure that the association is sustaining the resources and the production is
not affecting the environment. The presenting case study analysis of the HelloFresh company
is obtaining the continuous success in the marketplace during the pandemic situation to after the
various issues associated with the sustainability. The motive of report is to identify the
challenges which the organization is facing in the marketplace. The issues are contentious
increment in the competition and enhancement in the marketing cost due to which the
profitability of the company is reducing. The report will highlight the strategies which the
organization considers for the forthcoming success and address the issues regarding the
sustainability.
MAIN BODY
Description of the situation
The HelloFresh is one of the leading organization which provide the facilities of meal kit to the
large numbers of the people in effective as well as efficient manner. The organizations are
belong to the Germany and now continuously expending the network or marketing in domestic
as well as international marketplace. The organization is utilized various resources in order to
meet the demand of the people in adequate manner(Baumgartner, and Rauter, 2017). The

organization is satisfy the customers with the good quality and standard of the product or meals.
The aim of the company is to increase the brand values of the company and deal with the
forthcoming challenges for further success and survival. In context to attract the large numbers
of the buyers toward the brand the organization utilized the premium and exclusive packaging
for the production that is harmful for the environment.
The organization is affecting the natural resources and environment directly or indirectly.
Along with that the company is also facing another issues of increment in the prices and
expenses of the company due to which the profit of the company is reducing rapidly. In order to
deal with the competitors the organization is increasing the marketing factor that attract the large
numbers of the customers toward the brand(Zeemering, 2018).
. Along with that the company is facing the issue of changing the marketing trends and buying
behaviour of the consumer due to the covid 19 situations. The people are becoming more
conscious about the health and nature. In context to that the consumer willing to contribute in
saving the environment by buying the eco-friendly and recyclable and reusable product and
services of the company. The association is using the plastic packaging for the commodity
which affect the sustainability.
Problem statement, plan of analysis
Statement of the problem determine in case
with the assistance of the analysation the main problem the HelloFresh is facing are mentioned
as follows:
Management of the significant performance and growth during the covid 19 situations: at
the time of the pandemic the organization obtaining great values in the marketplace as it provide
the best meal kit services to the consumer in adequate way. The demand is higher before the
pandemic but after the pandemic the competition is increased as the restaurant and grocery stores
started providing the same facilities at the door steps of the consumers. Therefore, the growth
rate of the company become stable(Gafurov, and et.al., 2020. )
Winning the struggle of sustainability: it is one of the major issue which the company willing
to address in order to satisfy the large numbers of the customers in effective manner. As in
current period of time the consumer are becoming conscious for the good health of the company
the organization is willing to reducers the risk of failure and shifting of the potential customers

toward different brands. For that the company is planning to reduce the food wastage in effective
as well as efficient manner. For reducing the wastage of the resources the organization reduces
and avoid the factor of emission. For reducing the consumption of the plastic or affecting
element the organization keep changing strategies which include the controlling and monitoring
the operations of the company. Moreover, the strategies are not much effective for controlling
the activity(Gamil, and Alhagar, 2020)
Proposed plan of analysis
In context to deal with the current situation or the issues the organization determine the situation
in adequate manner and for the strategies to resolve them as soon as possible. Along with that
the association determine the value of the brand in the marketplace. In context to determine the
position the responsible person of the association conduct he micro and macro environment for
the welfare of the HelloFresh company. It delivers assistance in taking various plans of action
and formulation of the strategies for implementing the solution in successful manner.
Relevant literature review
The concept and the theories for addressing the issues of sustainability in the enterprises. Along
with that it is determine that the covid 19 affect the people brutishly all over the world and
changer the marketing trends ad perception of buying. According to (Garcia, and et.al., 2016) in
a business sustainability is the essential element that deliver assistance in offering values to the
resources. basically the sustainability is a way of working and accomplishing the goal of the
business enterprises without affecting the nature, living organs and environment. With the
assistance of the substantiality operation the company is able to resolve the issues of the
environment and consequence for the society as well as committee of the business activity.
For the sustainability in the organization, the management make various decision on the basics
of different elements which includes social, economic and environmental factors. The plans of
action regarding the sustainability should be innovative and creativity as compare to the
competitors. It delivers assistance in highlighting the values of thee company for attracting the
customer toward the brand. For the sustainability the company can focus on the elements which
are mentioned as follows:

 for the sustainability the organization can used the raw material which are eco-friendly in
manufacturing process.
 For reducing emission of greenhouses the organization can endeavour the utilization of
supply chain improvement.
 For that the company utilized the solar panels and renewable energy sources for the
supplying the powers
various strategies which the organization can utilized for the sustainability off the resources
which are also utilized by the various business enterprises in effective as well as efficient
manner. That includes, utilize the software for reducing the paper work, avoiding the
utilization of plastics, reduce, reuse and recycle the wastage, utilization of eco-friendly
products, optimization of logistic and shipment and partitives mission toward the
sustainability(Hörisch Johnson, . and Schaltegger, 2015).All the productivity of the company is
not acceptable by the various consumer as they are concision about the health of nature and
suitability of the natural resources. By taking various sustainability measures the organization is
able to deal with the forthcoming challenges and improve the image of the company in various
marketplace. Apart from that it is helpful in bringing the values, creativity and innovation at
workplace. Moreover, it attracts he customer and increase the awareness among the people
because of that the company is able to expend the network in the marketplace. The organization
is contentiously improving the performance of the company in the market for the satisfaction of
the consumers. Before the buying and obtaining the productivity and services of the organization
the buyer make sure that the organization is utilized the effective packaging material or are not
harmful for their health and nature.
For the packaging of the meal the organizational utilized the cardboard or the aluminium
packaging bags and material. Apart from that the organization can used the various approves of
going green which also utilized by the other brands for the satisfaction of the consumer. The
meal kit delivering organization take a resolution of reducing the wastage and greenhouses
emission Rather than utilizing the plastic the organization can utilized other substitute good
which do not affect the environment(Jusu. and et.al., 2020) . for instance the organization has
the opportunity to utilized and provide the organic food to the customers. For saving the
environment the organization can use the chemical free products and services that do not harm
the nature.

In order to deliver he sustainability the competitor of the organization which is Blue Apron is
using the commodity and the material that are reusable, recyclable and reducible for the
packaging of the productivity. The one fourth part of the material used by the Blue Apron is non-
recoverable and left over is sustainable and safe to use. The other brands are also offering the
facilities of recycling and decomposing of the wastages to the customer and make sure that it is
hygiene. In order to increase the awareness the company highlight the recycle sign on the
labelling.
Competitive analysis
For the determination of the values and competition in the marketplace the responsible person
conduct the SWOT analysis that considered strength, weakness, opportunity and threat of the
association. The competitive analysis will determine the effective micro and macro factor of the
which is affecting the performance of the company in different marketplace(Moratis, and
Melissen, 2019)..
Analysis and findings
Assessment of the current position facing HelloFresh
Since the advent of Covid – 19 pandemics and the resulting lockdowns in 2020, HelloFresh is
being recognized as the number one company of the meal kit industry in the world.
Structure of the company: HelloFresh is attempting to outwit the competition through
marketing. HelloFresh's business concept is upon meal box delivery of prefabricated goods,
which are then utilised to cook great meals . The mission statement of the company explains the
key characteristics of the company by focusing on four different areas: budget (by providing
higher value for money on every order placed by customers), health (meals guaranteeing
healthier and nutritious value to consumers), taste (opportunity for consumers to enjoy tasty and
varied diet), and sustainability (reducing environmental impact & supporting better ecosystem
through efficient production and delivery facilities).
The financial position: The firm has suffered from negative profit margins until 2018, when it
recorded positive financial results of 2.6 percent profit margins in terms of EBITDA. This was
due to the company's increased revenue as a result of the pandemic Covid - 19(Osmundsen, and
et.al., 2020.) . People are unwilling to leave their homes in 2020 owing to the development of

coronavirus and the installation of lockdown and social distancing measures by governments
throughout the world, and have discovered the best option in terms of online meal kit delivery
system. This resulted in increased sales in the third and fourth quarters of 2020. Revenue
increased by 68.5 percent due to an increase in clients. HelloFresh's revenue increased by 948
percent and 268 percent in the first half of 2020 in the US and overseas markets, respectively.
The strong profit margins of euro 216 million were booked in the middle of 2020 as a
consequence of a 14.5 percent drop in marketing expenditures compared to 2019.
HelloFresh's marketing organisation: Marketing is the single platform on which HelloFresh
competes in a highly competitive marketing climate with significant churn rates. As a result,
HelloFresh relies heavily on marketing to acquire market share, undermining its ability to
achieve favourable financial outcomes. This meal kit provider's marketing approach is heavily
reliant on social media influencers. This is because it can interact directly with customer niches
with the support of influencers. HelloFresh has employed high-profile celebrities like as Lea
Michele, Many Moore, and Jessica Alba to promote the brand's image among its target
demographic. HelloFresh also uses various advertising tactics to increase its popularity, such as
paying podcasters and creating soap operas through video adverts. For marketing purposes, 25%
of annual income is used to fund the marketing budget. In addition, HelloFresh has expanded its
meal kit services to 14 countries across the world, as well as enlarged its product line, in an effort
to meet the demands of the hungry market segment. HelloFresh's premium pricing approach is
one of the market challenges that is harming the company's ability to retain consumers.
Discounted meal kits given by rivals erode client loyalty because buyers regularly transfer from
one brand to another in quest of the greatest price. HelloFresh has partnered with A hold
Delhaize to create an effective distribution infrastructure, allowing the firm to sell its meal kits in
600 food shops. Furthermore, ready-to-eat meal home delivery adds value to the company's
distribution strategy (Salas‐Zapata, and Ortiz‐Muñoz,2019). To ensure long-term distribution,
HelloFresh has committed to sending meal boxes in batches and along the quickest path
determined using revolutionary planning tools.
Market analysis: The worldwide food and grocery retail business was worth $9.9 trillion in
2018 and is predicted to increase to $12.9 trillion by 2023. The meal kit market, which accounts
for a small portion of the overall food sector, was valued at $2.52 billion in 2017 and is predicted

to grow at a CAGR of 17.15 percent by 2025. Because of the pandemic, the food grocery market
has altered, and the demand for online delivery of meal kits has increased, resulting in increased
income for HelloFresh, one of the major companies in the meal kit sector. As long as individuals
choose to prepare their meals at home, the trend of increased income will continue.
The internal and external market: With the help of SWOT analysis, the internal capabilities &
weaknesses of HelloFresh will be identified along with the finding out the opportunities &
threats concerning the meal kit industry.
Strengths Weaknesses
 • HelloFresh is able to lower its
carbon impact by using efficient
manufacturing facilities. Furthermore,
creative packaging enables the
company to address its clients' severe
concerns about the excessive use of
plastics. As a result, the firm is
concentrating on long-term growth,
which leads to a positive brand image
in the market.
 The organisation is wasting food in
huge quantity.
 The cost of marketing and promoting
the product and services are higher.
 The sustainability packaging amount
is high.
Opportunities Threats
 • HelloFresh is able to reduce its
carbon footprint by utilising efficient
manufacturing facilities. Furthermore,
smart packaging assists the
organisation in responding to its
clients' serious worries about the
excessive usage of plastics. In this
method, the company focuses on long-
term growth, which results in a strong
brand image in the market.
 Blue Apron and other well-known
brands provide stiff competition.
 HelloFresh's competition is
heightened by low entry barriers for
newcomers.
Proposed solution to the problem
HelloFresh might be given the following remedies to help it overcome its problems:
• Reducing its marketing budget would aid in lowering total expenditures and achieving
favourable financial results.
• Invest in a delivery system to speed up the distribution process, resulting in lower fixed costs
and higher profit margins.

• Implementation of environmentally friendly packaging and delivery systems (Seuring,and
Gold,2013).
• Increased sales by opening real grocery stores in an attempt to go offline.
• Consistency in sustainability across different geographies, ensuring a stronger reputation in the
worldwide market.
• Implementation of a value-based pricing approach to sell its meal kit services by emphasising
qualities such as healthier, tastier, and fresh food.
The installation of sustainable packaging and delivery systems is the greatest answer that could
be given to HelloFresh out of the numerous alternatives that may function well for it in
maintaining its thriving performance in the years to come. The rationale for offering this solution
is that many clients are becoming annoyed by the company's excessive use of plastic in
separately wrapping its various materials accompanying the meal kit, which is then utilised to
create great dinners. According to the case study, one of the reasons why consumers are
cancelling their subscriptions is because of unnecessary packing. Furthermore, excessive
packaging is one of the factors contributing to growing marketing expenditures, resulting in
worse profit margins for the firm, and this is preventing HelloFresh from lowering its rates(Shet,
and Pereira, 2021. ). Again, the greatest value given in the sustainable pack by competitors like
as Blue Apron has hampered the company's client loyalty, with the company's 12-month
retention rate in 2019 being only 11 percent. If HelloFresh adopts sustainable methods, it will
undoubtedly attract more customers who are concerned about the environmental effect of the
product and service. This would enable the firm to increase its revenue even after the pandemic,
and as a consequence, the expectation for rising sales could be readily reached as a result of
better efficiency.
Action plan for Sustainability
HelloFresh should concentrate on revamping its packaging to utilize as few resources as possible
(both recyclable and non-recyclable). The product's design must guarantee that there are fewer
layers of packaging, which reduces the usage of plastics and so ensures sustainable practices.

Furthermore, the company's delivery system should be such that it prevents unnecessary shipping
by using a batch delivery system via the shortest path available, which might result in an energy
efficient delivery system(Toanoglou, Chemli, and Valeri, 2021)
Conclusion
From the above report it will be concluded the sustainability is becoming major issues for the
business organisation. By addressing this issues the organisations are able to lead the
marketplace in effective as well as well as efficient manner. Along with that it improve the
image of the brand in various marketplace and attract the customer toward the brand as people
are becoming conscious about the environment. The presented report highlighted the major
issues which the company is facing. In context to that the report mention the strategies which the
company can used to deal with the forthcoming challenges. The study shade a light on the the
internasal as well as external enjoyment of Theo organisation which is affecting the performance
of the company.

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