Case Study: Improving Customer Retention & Packaging at HelloFresh

This case study delves into the challenges faced by HelloFresh, specifically focusing on customer retention and excessive packaging. The analysis identifies customer retention issues stemming from pricing and taste, as well as concerns about the environmental impact of excessive packaging. The re...Read More

Integrated Case Study
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK ..............................................................................................................................................4
Description of the situation....................................................................................................5
Problem of the organisation and plan of Analysis..................................................................5
Analysis and Findings ...........................................................................................................8
Proposed solution to problems...............................................................................................9
Recommendations................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES:.............................................................................................................................12
Books and Journals...............................................................................................................12

EXECUTIVE SUMMARY
This report aims to analyse about understanding the various problems which is stopping
the growth of the Hello fresh. On the other hand, the main focus of the report is to provide
various solutions of the problems with the help of theories and frameworks. Along with that, the
organisation can overcome the problems and can achieve a sustainable performance in the
market. For further instance, the main focus is on the provide healthy meals during the time of
Covid 19 to maximize the profits in the market. There are various challenges which might be
faced by the brand. They need to improve certain areas in order to attract different target
audience in the market. Hello fresh had improved their services and aims for the rapid expansion
in different region to enhance the sales volume.

INTRODUCTION
Hello fresh is the one of the most reputed meal kit company. Despite various challenges
the organisation has seen an effective growth in the market. There are several issues which is
faced by the organisation during the time of Covid 19. Hellofresh has expand their business in
different other regions to maximize the overall profits. The report aims to analyse about
addressing different problems which is faced by Hello fresh and provide solutions to overcome
different challenges (Kim, 2019). The most ongoing challenge for the organisation is that they
need to retain the customers with the help of different strategies and approaches and generate
more profits in the market. The customer retention problems was mainly due to the pricing of the
products and taste. Another concern for Hello fresh is there is excessive packaging of the
products which questions the organisation sustainability in the market. On the other hand, in this
report there will be brief discussion about new opportunities on which the organisation can
capitalise to achieve a sustainable performance in the market. Along with that, in this report there
will be brief discussion about new opportunities on which the company can capitalise in the
market. With the help of significant improvement they can acquire a huge share in the industry.
For further instance, in this report there will evaluation of different concepts and principles
which the organisation can implement in the workplace and achieve great results in the market.
MAIN BODY
TASK
Aim: To analyse the issues faced by the Hellofresh which is customer retention, This is the
primarily one of the major issue which is stopping the organisation to perform as per their full
potential.
The second major concern which is faced by the organisation is excessive packaging of the
products which creates a negative impact on the environment. They are fail to achieve a
sustainable performance in the market.
Objectives:
 To analyse the concern of the customer retention in Hellofresh
 To evaluate the issues which the organisation is facing and solving the problem of
excessive packaging of products and services.

 To examine the strategies that will help the organisation to overcome different
challenges.
Description of the situation
Hellofresh is one of the fastest growing organisation which offers meal kit to different
consumers in the market. Due to the ethical practices the organisation has managed to acquire a
huge share in the market. They had established their business operations in 14 other regions. The
main vision of the organisation is to expand their services in other regions as well and dominate
the market (Hanaysha, 2018) (Huarng, and Yu, 2020). The main ongoing challenge for the
organisation is customer retention. Hellofresh needs to use multiple strategies and approaches in
order to attract different customers and maximize the sales volume. The management had to
innovate new ideas to gain a competitive advantage in the market. They need to become superior
and use the promotion strategies with the help of different campaigns to attract new potential
customers. Another major concern for the organisation is that they minimize the packaging of the
products. This will impact the environment in an negative way. They need to achieve sustainable
performance in the industry. On the other hand, Hellofresh needs to take different measures to
overcome different challenges which is stopping the growth. They also needs to maintain a
positive brand integrity in the market. The case study of Hellofresh revolves around the two
major concerns which needs to addressed in a systematic manner. The management needs to
invest in minimizing the waste and preserve the environment. With the changing market
conditions they needs to provide better services and products in order to gain a competitive
advantage in the industry (Leong, Ahady, and Muhamad, 2022). The principles and ethical
values will help the organisation to gain preserve the nature and optimize the resources in a
systematic manner. The organisation can implement a digital infrastructure in order to manage
their working operations.
Problem of the organisation and plan of Analysis
Statement of the Problem: The main problem which is analysed form the case study is
HelloFresh is further categorised in two parts which is described below:
 Customer retention – The main concern for the organisation is they need to attract
different individuals in the market in order to maximize the profits. They need to take
different measures to overcome this challenge. The main priority for Hellofresh
management is that they needs to improve their services to attain maximum customer

satisfaction (Quach, 2022). This will significantly help them to retain different consumers
in the market. They can use the social media platforms to target new potential customer
and improvise the overall sales of the organisation.
 Excessive packaging in products – This is another major concern which is questioning
the organisation sustainability in the market. They needs to minimize the packaging to
preserve the environment. This will also help them to improve the positive brand integrity
in the market. They need to analyse the new marketing conditions and works in a
systematic manner (Ross, 2018). Hellofresh needs to upgrade their technology and use
the new advancements in order to achieve a sustainable performance in the industry.
They need to plan their working operations and various other critical factors in which
they are lacking. They can comply with the new surrounding in order to provide better
services to the market.
Proposed Plan Analysis
It is a systematic roadmap for Hellofresh by evaluating the critical areas which could
resolve the problem for the organisation and help them to achieve great results in the future. This
particular analysis will help the researcher to solve the two problems identified from the case
study.
Research Questions
 What is the importance of customer retention for the organisation ?
 What are the issues which the organisation is facing to solve the problem and improvise
the sales of the products ?
 What are strategies which Hellofresh can use to achieve great results in the market ?
Literature Review
What is the importance of customer retention for the organisation in the market ?
According to the Customer retention plays a vital role which can help the organisation to
enhance the sales volume (Mahmoud, Hinson, and Adika, 2018). This will be attained by
providing excellent quality products and services to the consumers in the market. In order to
achieve great results the organisation needs to use different platforms to promote the products
and expand their business operations in different regions. The main vision of the company is to
generate more profits and gain competitive advantage in the market. Hellofresh needs to use
various technological tools to attract the potential customers. With the changing market scenario

they need to provide the products according to the customer preferences. They will be able to
dominate the market by following the ethical practices.
What are the issues which the organisation is facing to solve different problems and
improvise the sales of the products ?
According to the the sales of products and services could be increased by providing
quality products and services to the customers. With the formulation of different strategies the
organisation can achieve better results in the future (Larsson,and Broström, 2019). The major
issue is the technology which needs to be imported in systemic manner. Hellofresh can indulge
in various joint ventures to generate more capital and implement necessary solutions of the
concerns. This will surely help them to improve the overall sales of the products and they are
bale to attract new customers in the market. This will help them to gain a competitive advantage
in the market.
What are strategies which Hellofresh can use to achieve great results in the market ?
According to the Hellofresh could implement various strategies to dominate the market
and acquire a huge share in the industry. They can use the three basic principles which is
effectively mentioned below:
Step 1: Providing quality products to the consumers to achieve increased retention
Step 2: Implement the feedback system which could help the company to improve various
critical areas of the organisation.
Step 3: using different social media platform to attract new customers from the market.
The strategy is used by the Hellofresh is effective in terms of every manner. They can dominate
the market and enhance the sales volume (Bhatt, 2020). They are able to attract new targets
customers in the market and acquire huge share. The three strategies could help the organisation
to achieve to success in the future.
 Providing better products – The organisation can provide better products toe the
consumer to attain maximum customer satisfaction. They are bale to dominate the
market. This will enhance the overall sales of the organisation.
 Implement new system to improve the areas – The organisation needs to implement
new ways and indulge a feedback system. This will help them to improve the critical
areas and achieve greater performance in the market.

 Build a heathy relationship with the customers – This plays one of the most vital role
which could help the organisation to achieve different targets and retain the customers in
an effective manner. Hellofresh needs to follow different ethics and values in order to
achieve a huge customer share and dominate the market.
Analysis and Findings
From the above plan of analysis and problem statement there are different measures
which Hellofresh can take in order to overcome different challenges and increase the profits in
the market. The organisation needs to take effective measures in order to offer better products to
the consumers (Stolberg, 2019). This wills surely increase the customer retention rate for the
company. From the above problem statements and the literature review the organisation needs to
use the certain principles to effectively improve various areas and address the concerns. The
company needs to introduce new ways and indulge in various joint ventures. This will help them
to become more profitable in the market.
Findings
 It has been analysed that Hellofresh needs to introduce new ways to become more
efficient and optimize their overall performance. With the new technological
advancements they can significantly provide better services and products to the
consumers in the market.
 It has been analysed that the organisation has managed to achieve a systematic growth in
the market (Bischof, and Rudolph, 2021). They had improved various factors and expand
their business in different other regions for the recent years. This will certainly help them
to incur more profits in the market and achieve greater results in the future.
 From the industry it has been analysed that Hellofresh needs to introduce new ways to
retain the customers. They need to provide the products according to the customer
preferences. With the formulation of right strategies and approaches they are able to
acquire a huge share in the market.
 The organisation has expanded their business by providing different quality products to
the consumers. They had provide the products which are gluten free and healthy
(DeTienne, and Westwood, 2019). This is the major source to attract different individuals
in the market and achieve more profitability.

 The organisation has expanded their boundaries and provide essential products for the
different regions. They value their customers which is one of the major source. It helps
them to achieve success in the industry.
 It has been analysed that the organisation can attract the customers with the help of
loyalty rewards. This will help them to build a healthy relationship with the consumers.
They need to offer better products and needs to attain maximum customer satisfaction in
the industry.
Proposed solution to problems
After analysing the problems of the Hellofresh there are various new ideas which the
organisation could innovate in order to become more efficient and improve serval areas of the
organisation (Guardiola Ramírez, 2019). They tend to focus on different areas which will make
them dominate the market and help them to gain a competitive advantage in the upcoming future.
The solution of the challenge is described below:
 The organisation needs to implement new ideas in order to acquire a huge share in the
industry. The management needs to work with the employees in a coordinated way and
impoverish certain areas to offer better products to the consumers. There a re various new
opportunities in the industry on which the organisation can capitalise in an effective
manner.
 Hellofresh needs to enhance their digital infrastructure to improve certain areas in the
market. This will help them to optimize the performance and through this they are able to
achieve great results in the future.
 The organisation needs to use different principles and establish an enhanced structure in
the workplace (Katte, 2019). This will help them to improvise the productivity of the
workplace and increase the working operations.
 They can offer better products to the consumers with the implementation of new structure
in the workplace. They could expand their business in other regions and provide the
products which fulfils the needs and wants.
 They can also use the different platforms in the new era to attract potential customers
from the market. With the indulgent in new campaigns they can promote the products at a
rapid pace and generate more revenues in the industry.

 The main plus point for the organisation is the experience which help them to attract
different audience. They had managed to build a healthy relationship with the customer
which will help them to create a step forward toward the competition.
The best fit solution for Hellofresh is that they need to implement the digital
infrastructure in the workplace. This will help them to become more profitable in the market.
They can retain the customers and help them to achieve greater results in the future. There are
various other opportunities with the changing market trends they can capitalise in a systematic
manner. On the other hand, they can build healthy relationship with the customers and enhance
the sales (Wierckx, 2020). This will benefit them in the upcoming future and optimise their
performance in a significant manner. This is one of the most suitable solution which could solve
major problem for the organisation. With the formulation of different strategies and addressing
the concern in an significant manner Hellofresh will able to achieve better performance in the
industry. The main vision of the organisation is to provide healthy meals to the consumers which
benefits them in an appropriate manner.
Recommendations
 With the implementation of right technology and different tools Hellofresh can manage
the work operations effectively and offer excellent quality services to the customers in
the market. This will also help them to utilise the resources in an effective manner.
 They can offer better products to the consumer. On the other hand they can attract the
consumers with the help of different rewards. This will help them to build a healthy
relationship with other individuals. They could generate more profits in the market.
 Hellofresh can offer loyalty points to the consumers which will help them to retain
different customers. This will help them to gain a competitive advantage over the
competitors. The main vision of the organisation is to expand their business in different
regions and achieve different targets in the market.
 Hellofresh can implement a feedback system to improve various critical areas of the
organisation. With the help of new technology they can understand the customer
preferences and improve the company overall performance.
 The management of Hellofresh needs to innovate new ideas and address the concerns and
overcome different challenges. There are various benefits which could help the company

to grow their business in different regions by fulfilling the needs and desires of the
consumers.
Scope: It has been analysed that there was not much wider scope for conducting the research. It
is based on local level which does not consist wide information form range of sources. For
further research, it will make sure that the information and data will be collected on national
level.
CONCLUSION
From the above report. it has been concluded that the organisation needs to take different
measures in order to offer better products and services to the consumers. On the other hand, in
this report there is brief discussion about various measures which is stopping the growth of the
organisation. Along with that, there is evaluation of different techniques and principles which I
could be beneficial for the company. For further instance, in this report there is discussion about
new opportunities on which the company could capitalise and enhance the sales in the market.

REFERENCES:
Books and Journals
Bhatt, S.K., 2020, December. Survey on Big Data Analytics: Domain Areas and Features.
In 2020 2nd International Conference on Advances in Computing, Communication
Control and Networking (ICACCCN) (pp. 254-258). IEEE.
Bischof, S. and Rudolph, T., 2021. Consumer Goods Subscriptions: How to Win in Retail in the
21st Century. Walter de Gruyter GmbH & Co KG.
DeTienne, K.B. and Westwood, J., 2019. An Empirical Study of Service Recovery Quality and
Customer Retention. Journal of Management Research, 19(4), pp.235-249.
Guardiola Ramírez, F., 2019. Towards Paper Insulation Packaging: Evaluation of Thermal and
Logistics Performance. A Case Study at HelloFresh.
Hanaysha, J.R., 2018. Customer retention and the mediating role of perceived value in retail
industry. World Journal of Entrepreneurship, Management and Sustainable
Development.
Huarng, K.H. and Yu, T.H.K., 2020. The impact of surge pricing on customer retention. Journal
of Business Research, 120, pp.175-180.
Katte, L.M.V., 2019. HelloFresh: a recipe for sustainable market leadership? (Doctoral
dissertation).
Kim, J., 2019. The impact of different price promotions on customer retention. Journal of
Retailing and Consumer Services, 46, pp.95-102.
Larsson, A. and Broström, E., 2019. Ensuring customer retention: insurers’ perception of
customer loyalty. Marketing Intelligence & Planning.
Leong, V.S., Ahady, D.M.H. and Muhamad, N., 2022. Corporate image as an enabler of
customer retention. International Journal of Quality and Service Sciences, (ahead-of-
print).
Mahmoud, M.A., Hinson, R.E. and Adika, M.K., 2018. The effect of trust, commitment, and
conflict handling on customer retention: the mediating role of customer
satisfaction. Journal of Relationship Marketing, 17(4), pp.257-276.
Quach, S., 2022. Customer retention: Exploring the effects of relationship layers and perceived
indifference. Journal of Consumer Behaviour, 21(3), pp.543-553.
Ross, N., 2018. Customer retention in freemium applications. Journal of marketing
analytics, 6(4), pp.127-137.
Stolberg, T., 2019. Applicability of bio-based polymer packaging in the meal kit context-A case
study with HelloFresh.
Wierckx, P.J., 2020. The Retention Rate Illusion: Understanding the Relationship Between
Retention Rates and the Strength of Subscription-Based Businesses. Journal of Applied
Business & Economics, 22(14).