Introduction
The idea behind the establishment and success of Freitag was to produce bicycle messenger bags from recycled truck tarpaulins. Within a period of ten years, the firm’s owners had managed to increase its product portfolio of accessories and bags. Between 2009 and 2014, Markus and Daniel Freitag began to develop sustainable clothing as the new raw materials for the company’s future products.
This meant that they were ready to target and enter an entirely new market segment. This move meant that there was additional branding, marketing, and innovative activities were needed at Freitag. The emerging challenges included the need to meet the changing demands of the existing customers by focusing on style and design, the focus on individuals who took the issue of sustainability seriously, and the nature of the existing mass market. This paper gives a detailed analysis of this case and offers evidence-based strategies for moving forward.
Critical or Central Issues
Freitag has remained a successful and profitable business venture because of its owner’s ability to stay true to the outlined mission and vision statements. The production of bags, wallets, and laptop carriers from recycled materials is something that resonates with the demands and expectations of its customers. The existing business model has supported operations and met the needs of different clients. After the emergence of new challenges in the market, Freitag decided to focus on a new journey aimed at manufacturing a new material that was sustainable. The main objective was to ensure that different customers received high-quality workwear (von Wittken, 2017).
The second aim was to deliver new raw materials that tackled the problems associated with synthetic and cotton products in the global market. The company’s leaders were, therefore, grappling with these critical issues:
- Was the production of sustainable clothing material the right way to go?
- How would the existing customers react to the targeted innovative idea and the potential implication on the overall identity of the company’s brand?
- Which group of customers should Freitag consider or target for its new collection of sustainable materials or clothing?
Fortunately, the lessons and experienced recorded in the past have empowered the company’s leaders to identify the best approaches for fulfilling the changing needs of different clients. The most outstanding observation is that the firm should continue to focus on its original values and consider the issue of sustainability (von Wittken, 2017). There is also a need to reflect on the issues associated with the nature and success of the original bags made from recycled tarpaulins.
Case Analysis: Goals vs. Constraints
Freitag has implemented a powerful business model that has made it possible for all workers to deliver high-quality products to the identified and existing customers. The leaders have remained true to this firm’s true value proposition. It has implemented evidence-based and acceptable manufacturing procedures that promote sustainability and environmental conservation (von Wittken, 2017).
The continuous analysis of the changes experienced in the global market made it possible for the company to grow exponentially for several years. The major expectations from global customers have triggered new objectives or goals at Freitag. This means that the company plans to launch new bags made from sustainable clothing to remain relevant and successful in the market. It intends to record positive results while at the same time improving its position in the sector.
However, Freitag is facing a number of constraints that are capable of disorienting this objective. Some of the key ones are presented below.
- A poor understanding of the exact needs and expectations of the current customers
- The potential success or failure of the proposed clothing material remains unknown
- The absence of an effective strategy for introducing new products for its existing customers
- The global market is characterized by emerging changes, demands, and expectations due to the issue of climate change
- Over the years, Freitag has not been performing positively
- A powerful marketing strategy is lacking that can ensure that the new product is available to different customers in several markets
- Competition remains a major challenge due to the presence of non-synthetic and cotton products in the market
Despite the presence of these barriers, the Freitag brothers have remained optimistic and capable of learning from past events and mistakes to move the company forward. They can capitalize on the positive implications of the current mission in order to understand the best way to pursue the current goal (von Wittken, 2017). These measures can overcome such challenges and make it possible for this company to achieve its goals.
Moving Forward: Alternatives and Best Strategy
The anticipated meeting between Daniel and Markus is expected to provide long-lasting solutions to the challenges affecting Freitag as it plans to introduce a new product in the market. After several years of deliberation, the managers of this firm agreed that there was a need to introduce new raw materials that would transform the existing products (von Wittken, 2017). This decision presented new challenges regarding innovation, strategy formulation, customer satisfaction, and marketing. With the presence of a recognizable and competitive brand in the market, the new move would become a new test for this company’s resilience and ability to transform with the times.
The studied case study reveals that Daniel was focusing on the most appropriate strategies to bundle resources and create a balanced product positioning strategy. Such a move would make it possible for Freitag to retain its business image and remain a business venture guided by the concepts of sustainability and design (von Wittken, 2017). This is a clear indication that the company was focusing on three types of customer groups.
The first one was those who took the issues of lifestyle and design seriously. These individuals were known to support the company’s business model. Forces of sustainability have led to another segment of clients that promote the best approaches to sustainability (von Wittken, 2017). This means that the social and ecological performance of the new bags will support the success of this new venture. Another option is to consider the need to target the entire mainstream market for the new product. The majority of these clients will not place too much emphasis on issues to do with sustainability and design.
With the above facts and issues, several initiatives are critical if this company is to continue performing optimally and remain relevant in its market segment. The first one to consider is the current decision to produce the suggested sustainable clothing and produce high-quality products for the current customers. This strategy will ensure that the existing clients receive bags that carry the original purpose and image of Freitag.
The second one is to devise or develop a powerful marketing strategy that is informed by the changing expectations of emerging customers (von Wittken, 2017). This model will ensure that the demands of the above three groups of potential clients are studied and understood. This process will present evidence-based concepts and ideas for implementing a superior strategy for producing and marketing the new bags successfully. The final possible solution is using a mass marketing mix whereby all customers are targeted and informed about the nature of the proposed business change.
Best Strategy and Implementation Plan: Suggested Steps
Many successful companies across the globe focus on specific market segments to reduce competition, improve their products continuously, and meet the diverse needs of their loyal customers. Over the years, Freitag has remained a reputable company that produces and markets high-quality bags made from truck tar plains. Customers in need of design and lifestyle have always purchased such products in order to pursue their economic goals successfully. This understanding explains why there is a need for Freitag to focus on this segment and introduce the concept of sustainability (von Wittken, 2017).
This is necessary since many people are becoming socially and ecologically aware due to the current problem of climate change. This means that Freitag can establish a powerful model for producing sustainable clothing as the primary raw material for its bags. This will be followed by a powerful implementation plan.
Several procedures or steps will be critical towards implementing the above-proposed action plan. The concept of change is essential if this course of action at Freitag is to deliver positive results. Kurt Lewin’s change theory is a powerful framework for addressing existing issues and presenting additional practices that will result in positive performance. The first stage of refreezing will be considered to identify appropriate sources of raw materials for producing the targeted sustainable clothing. During this stage, different employees and stakeholders will be informed about the changes experienced in the global market and why there is a need to merge them with the original spirit and mission of this company. This approach will minimize most of the issues and challenges that might affect the entire process.
Throughout the second phase of change, the company will begin to produce the suggested raw material for manufacturing high-quality bags. This will be followed by a powerful marketing mix that considers these key issues: customers’ demands, pricing, location, and social changes (von Wittken, 2017). This strategy will deliver high-quality bags and other products that promote environmental conservation while at the same time delivering design and quality to the greatest number of customers. These changes will eventually become the norm for Freitag and make it a leading competitor in the market.
Conclusion
The above discussion has identified Freitag as a successful company led by competent designers who have remained true to their original objectives. These managers should allow the current mission to inform their future decisions and identify the emerging social and environmental forces in the global market. This knowledge will deliver a new model for producing new items while at the same time retaining the original image of Freitag. The concept of sustainability will make it possible for these two brothers to make the best decisions that can take this firm to the next level.
Reference
von Wittken, R. (2017). The venture Freitag: From recycled bags to sustainable fashion. Munich, DE: TUM School of Management.