Strategy Formulation to Minimize The Returned Product and Improve The Sales Performance of House of Mente

Abstract

This research aims to find the reasons affecting the high number of returned product of House of Mente and find the best strategy to minimize the number of returned product and improve the sales performance of House of Mente. This research is using descriptive qualitative method by using Five Force Analysis and SWOT analysis method to determine the position of House of Mente in the market. That position will be used as a consideration in the making of the strategy for the business. The data used in this research is gathered from some sources; advisor, reseller, end-customer and prospect customer through observation, interview and group discussion. The result of the research shows that position of House of Mente is in quadrant 3, which is weakness and opportunity. In that position, the best strategy for the company is turn around strategy; the company should minimize the weakness to grab the opportunity. From the observation, the factors that most affect returned product come from internal (the product itself) and external (consignment system with resellers) factors. To minimize the internal problems, the company should fix the product (packaging, standardization of quality and product life time) and innovate the distribution system (through reseller and direct selling). It can be done by opening a booth on exhibitions, having a partnership with snack box and hampers businesses, supplying the welcome snack for hotels and restaurants. The company should focus more on the direct selling to the end customer rather than to the resellers to improve sales performance, cut off some ineffective resellers, find the right resellers and improve the current product.