Analysis of Hussmann Corporation - Case Study Example

Table of Contents Introduction 2 Company Overview 2 The Product 3 SWOT analysis 7 Marketing Strategy 8 Global and Current Events 9 References 11 Introduction Company Overview Hussmann Corporation is considered as the leader in the commercial equipments for refrigeration. Hussmann Corporation was founded by Harry L. Hussmann in the year of 1906 in St. Louis, Missouri. From 1906, Hussmann has continued inspiring solutions by helping retailers display fresh foods and also preserve them. At present, Hussmann is considered as a world leader in manufacturing, installing, selling, and servicing its equipment and refrigeration systems used in merchandising to customers throughout the world. Hussmann follows a motto of keeping foodstuff fresh throughout the world. Hussmann serves broad range of customers who are involved in the global chain. These comprise supermarkets, warehouse clubs, convenience stores, mass merchants, foodservice establishments, and drug stores. Hussmann inspires problem solving innovations and solutions in the parts of merchandising, shelf life extension, food safety, life cycle value, and sustainability. Hussmann has been focused on tackling the needs and wants of the customers of their products and also, providing solutions which gives them higher value for the customers businesses. Hussmann is a worldwide manufacturer of food merchandising apparatus and refrigeration. It functions as part of the Ingersoll Rand Climate Control Technologies Sector. There competitors are Hill-Phoenix, Kysor Warren, Tyler Refrigeration, and Zero Zone. They also provide services and equipments to direct controlled environments and also temperature for the food items and other perishables. Ingersoll Rand Climate Control Technologies includes both stationary and transport refrigeration solutions. The products and brands of Ingersoll Rand includes along with Hussmann, Thermo King which is a leading name in temperature control systems used in transport. Also Koxka, is the counterpart of Hussmann based in Europe. Hussmann was the provider of the first display case for meat which was patented. It also introduced the first food case to be frozen for Clarence Birdseye. They also were the introducer of the refrigeration systems exclusively designed for the food stores. In 1935, they were the inaugurator of the self service frozen food display. From their inception in almost all the products in food protection merchandising, they have been the pioneer (Hussmann Corporation, 2010). The Product Hussmann’s products comprises of refrigerated and also non-refrigerated merchandisers for display, evaporative condensers, heat exchange coils, refrigeration systems, walk-in coolers, beverage coolers, and freezers, and other related products. Display merchandisers which are used for supermarkets takes up an essential part of the product line of the company. Hussmann prepares both custom made and standard display fixtures for almost every perishable department available in a supermarket. This includes meat, produce, dairy, bakery, frozen food, and specialty departments. To support its extensive product offerings the company provides service, installation and maintenance and also the aftermarket parts through its widespread service organization (Hussmann Corporation, 2010). The company along with other task sells a collection of display cases to various convenience stores, restaurants, cafeterias, specialty shops, and other food outlets. The company also manufactures systems used for refrigeration for its walk-in coolers, display cases, and other applications. Hussmann refrigeration systems include smaller Protocol (or “distributed”) systems, large parallel racks, large refrigeration houses mounted outside or inside the store and conventional condensing units. Supporting this establishment of industry, top products is a world class service organization which comprise of over 1,600 employed technicians by the company and 50 branches for service owned by company in the Canada and USA. These service branches provide design, installation, service, preventative maintenance and a wide range of parts for aftermarket activities. A countrywide call center for providing service, wireless computers’ support Hussmann’s well-trained service technicians through a central data warehouse (Ingersoll rand, 2010). With these data and communications tools, our dispatchers can talk to technicians in real time to help us address your emergency needs as rapidly as possible, often letting us review service histories and pre-diagnose problems before we arrive (Hussmann Impact Merchandisers, 2005). In recent times Hussmann Corporation has launched a product called Life Line Premier Series Reach-ins in partnership with Nestle. The product was launched by Hussmann for attracting, guiding, and influencing consumers to the frozen foods location in the shopping centers. The product is also illuminated by bright LED lights from EcoShine. The use of this product has increased the popularity of frozen food among the buyers. It has made frozen food a must have item for grocery stores also. The product is used to attract buyers for impulse purchases. It also reduces energy cost and also promotes safety of food products. It is made with wood clad package with beautiful aesthetic. The look of the product adds dramatic visual appeal to the consumers. The product is first of its kind with new reach-in display technology for its cases. It effectively highlights the frozen foods. It is provided with option of multiple heights, lighting and ends, facades. It has focal display points which feature new products inaugurations or special promotional schemes. There is also magnetic signage which stimulates impulse shopping and also promotes premium products. For cross merchandising an integrated shelving of dry nature is provided. Also complementary products are provided next to the ice cream section. For enhancing the visibility of the product reflective mullions are included. This creates an attractive view for the consumers with no division in between the racks. The eco shine LED lights are used for energy saving as it is made with fluorescents and uniform illumination. This enables to save light energy by nearly 60% - 80%, if used as a dimming sensor. The innovator III doors are made with antimicrobial handle made by Microban. It also saves 14% more costs in energy. This technology also helps the door to be protected from bacteria’s which causes odor and stain. This lifetime protection product creates a shopping experience which is clean and encourages buyers to pay frequent visits (Hussmann Corporation, 2010). SWOT analysis SWOT analysis is a strategic management tool. It is basically used by marketers. The tool analyses the strengths, weaknesses, opportunities and threats of a product or a company and helps the company to decide on their way forward to tackle competition in this competitive environment. The strengths of reach-ins include the reach-in merchandisers for frozen foods of Hussmann is a product which has taken a foremost position in their industry. The annual sales of reach-ins are around 250 Millions. The sale of the product has reached almost all grocery, conventional stores. Also big supermarkets like Wal-Mart have used the reach-ins for their products. Hussmann reach-ins has become one of the most sold products of Ingersoll Rand. Hussmann as a company is always looking to innovate and develop new products to tackle the market competition. They have looked into a variety of factors before developing their products like food safety, shelf life, green initiatives, merchandising, and even life cycle management. They have innovated products like Lifeline premier series reach-ins. This has benefitted the consumers as well as the owners i.e. the business people who are using the product. It has helped in saving operational costs like energy saving costs. They have made temperature sensitive and frozen food products a thing of attraction to visiting consumers at the stores and shops. A brand of Hussmann called Thermo King is a world leader in transport related temperature control mechanism. The Hussmann’s green initiatives like energy savings and eco friendly use of products have helped them to be a favorite among consumers and also retail stores. The competitors like Hill Phoenix, Tyler Refrigeration, Zero Zone, Kysor warren are a threat to Hussmann. But with category focal point display, reflective mullions, turnkey solutions, merchandising options like LED lightings, dry shelves, wood claddings provides an opportunity for consumers as well as stores owners to be benefitted. It has high merchandising flexibility. Antimicrobial handles is an option which provides the lifeline premier series products a competitive edge over its competitors. Though the price of the product is bit higher than the competitors but due to its amazing modern features the product is becoming a favorite among the users. The annual operating cost of Hussmann’ products are quite less compared to its benefits. Though the competitors pricing is in some case lower like for similar product of Zero Zone the price is comparatively lower. But due to overall positive influence of their products on the consumers Hussmann’s products has become an almost certainty in every supermarkets and grocery stores. Marketing Strategy Marketing strategy plays a vital role in building a product to a brand status. The six elements of marketing strategy like product, people, price, place, promotion, performance each has to be looked into carefully before preparing any marketing strategy. The product lifeline premier series is a one of its kind product. The product offers a unique experience for both buyers as well as shop owners. It is provided with bright display facility that influences the consumers to go for impulse purchase. These features of the product are highlighted when designing its marketing strategy. The people attracting capability of the product is immense. It has made frozen food products a centre of attraction among the buyers at the stores where it has been installed. The consumer segment of frozen food is a huge one, so this display cases has enabled the shop owners to highlight and sell their product much better than in earlier times. The price of the product is competitive. The features and value addition that the product is providing to its users like anti microbial doors, bright LED lightings which save energy are providing value for money for the purchasers of the product. The place of availability of the product is from Hussmann Corporation. The product is made by entering into a partnership with Nestle. Product has been launched and marketed by Hussmann. For promotional aspect the product is being advertised in commercial magazines, grocery magazines, supermarket news, grocery headquarters, progressive grocers, and also frozen food retailers and also retailers of refrigerated retailers. The performance of the product is of the highest class. It has caught the imagination of all. The exclusive features of the product have made it a profitable buy for the purchasers of the product. The annual sales of the reach-ins is around 250 Million and with the launching of the lifeline premier series products it is bound to go up (Georgetown University, n.d.). Global and Current Events Hussmann Corporation has been a market leader in the frozen food refrigeration sector. They have also a brand called Thermo King which is the global leader in transport temperature control. Ingersoll Rand, the company of which Hussmann Corporation is a subsidiary, has recently announced that they are leveraging Windchill PTC product lifecycle related management software. They are continuing on path of constant innovation. This leveraging is done to considerably eliminate the need of product revision. Also by this Ingersoll Rand will be able to reduce cost and bring superior products to market quicker in future. They by the use of Windchill will be able to collaborate much better (Earth Times, 2010). Hussmann Corporation also has launched 12 innovative products that include the lifeline premier series in recent times. The products are prepared with latest innovation and keeping in mind the consumer benefit. Products help in reducing the operational cost of the users. Apart from life line, premiers series other launched products are Eco Sine LED lights, Ecovision doors, service products, Microban’s Antimicrobial protection doors, Xtra life meat case, protochill, low temperature excel contour styling, Ice zone, Isla Island combination case, Duet merchandising, Q3 series meat and bakery showcase. All these products are made of innovation and beneficial qualities for giving profit to the purchasers and also providing fresh foods to the consumers. The benefits and innovative attributes of Hussmann have made them a preferred product throughout the world. The Hussmann green initiatives have also becoming a success as they have been able to spread the green awareness to all its users and consumers alike. This has made a positive impact in the minds of the consumers as it has made the brand image stronger (News Blaze, 2009). References Earth Times, (2010). Ingersoll Rand Expands PLM Footprint with PTC’s Windchill Solution. Press Release. Retrieved Online on June 3, 2010 from http://www.earthtimes.org/articles/show/ingersoll-rand-expands-plm-footprint-with-ptcrsquos-windchill-solution,1326016.shtml Georgetown University, (No Date). Marketing 6Ps. Analysis Starter Questions Retrieved Online on June 3, 2010 from http://faculty.msb.edu/homak/HomaHelpSite/webhelp/Marketing_6_Ps_ASQs.htm Hussmann Corporation, (2010). Hussmann Timeline. Company Information. Retrieved Online on June 3, 2010 from http://www.hussmann.com/CompanyInformation/Pages/HistoryofHussmann.aspx Hussmann Corporation, (2010). Hussmann Products and Services Overview. Company information. Retrieved Online on June 3, 2010 from http://www.hussmann.com/CompanyInformation/Pages/ProductsandServices.aspx Hussmann Impact Merchandisers, (2005). Hussmann Impact Reach-ins for frozen food, ice cream, medium tem products. Ingersoll Rand business. Retrieved Online on June 3, 2010 from http://www.bayequipmentexchange.com/pdfs/PRODUCT%20PAGE/RL/Hussmann%20RL.pdf Hussmann Corporation, (2010). Lifeline premier series. Hussmann's New Lifeline Premier Series Retrieved Online on June 3, 2010 from http://www.hussmann.com/Pages/LifeLinePremierSeries.aspx Ingersoll Rand, (2010). Products and services. Product listing. Retrieved Online on June 3, 2010 from http://company.ingersollrand.com/productsandservices/Pages/default.aspx News Blaze, (2009). Hussmann Launches 12 Innovative Products & Services. Top Story. Retrieved Online on June 3, 2010 from http://newsblaze.com/story/2009052206010200008.pnw/topstory.html Read More