Running head: CASE STUDY 9.1 HMS LTD.

Case Study 9.1 HMS Ltd.

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 CASE STUDY 9.1 HMS LTD 2

Case Study 9.1 HMS Ltd.

Abstract

HMS is a high-tech firm that is based in Sweden, and its origin is based on a project

developed by a student at Halmstad University. When the company was incepted, one of its

major objectives was to reach out to a global market. Some of the most significant cornerstones

of the marketing strategies of the firm include product development and innovation. Additionally,

the company has two major segments, and these are Anybus and Gateway. Customer relations

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are also valued at HMS. The firm also maintains good relations with financial institutions such as

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banks.

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The founders of HMS established that it was necessary to have devices connected to
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different industrial networks and field-buses. This saw the need for the development of the
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products referred to as “Anybus,” which is a network card that allows the connection of any

device to any network. Anybus later become one of the two major segments of HMS alongside
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Gateway. Under Anybus, HMS sells directly to customers while under Gateway, distributors are

involved in the channel. Systematic marketing research is very key to HMS. Additionally, since
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it is a technology firm, it acknowledges that customer orientation, as well as sales, are very
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important.
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1. How does the offer differ between HMS’s different segments?

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 CASE STUDY 9.1 HMS LTD 3

The gateway segment and the Anybus segment are the two main segments in HMS. Under

the Gateway segment, the customers are offered standard or ready-made products through the

use of distributors available. On the other hand, under Anybus segment, the customers are

offered customized products. The field application engineers in HMS work closely with

development engineers to ensure the firm’s products are integrated into the devices of the

customers. Standard products are also offered under the Anybus segment. The close connection

between HMS and the customers ensures the customers get products that meet their needs under

the Anybus segment.

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2. Which distribution channels have HMS in different segments? Discuss why they have

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chosen different channel strategies.

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HMS has two major segments, and these are the Gateway segment and the Anybus

segment. In the Gateway segment, there are several distributors since the potential customers are
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very many. In the gateway segment, the company involves distributors who, in turn, sell the
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products to the customers. The customers, in this case, are electrician companies, and HMS

educates the distributors on how they can offer good services to the customers. In the Anybus
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segment, there are no distributors involved, and HMS sells directly to the customers. One of the

reasons why HMS uses different channel strategies is that under the Anybus segment, there is a
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need to have a close relationship. Besides, on Anybus strategy, some of the products are
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customized, and these can be achieved if there is a close relationship between the firm and the
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customers (Chen & Popovich, 2015). Additionally, in HMS, when a customer buys a product

from HMS, it significantly increases the accumulated sales turnover.

3. Describe and discuss the buying decision process by HMS customers?

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 CASE STUDY 9.1 HMS LTD 4

HMS customers follow a buying decision process that has five key stages. The first stage

is problem recognition, where the potential customer realizes that they have a need that can be

satisfied by a product available in the market (Munthiu, 2019). The second stage is information

search, and under this stage, the customer puts in efforts to get information on the products they

are interested in. Some of the major sources of such information include personal sources such as

friends and relatives and commercial sources like dealers and advertisements. The third stage in

the process is the evaluation of alternatives where the customers use the details they got from the

previous stage to evaluate the options available (Prasad & Jha, 2014). The fourth stage is

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purchase decision where the actual decision to buy a particular product is made, and in this case,

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the customers decide to purchase HMS customers (Munthiu, 2019). The final stage is post-

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purchase evaluation, where the customer usually takes action based on whether they were
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satisfied with HMS products.
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4. Discuss the importance of different relationships for HMS development?

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There are several relationships that are maintained with HMS, and this includes close

customer relationships. The close relationship with customers is important to HMS since they
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help increase the level of sales. Once potential customers choose products from HMS, such

results to a significant increase in the accumulated sales turnover. Additionally, close

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relationships between the company and the firm ensure that the customers get exactly what they
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want, and by so doing, customer satisfaction is achieved (Kanten & Darma, 2017). It is worth
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noting that customer satisfaction is one of the most significant goals of a company and helps

improve the level of sales. This is due to that; satisfied customers are likely to refer their friends

and relative to the company (Kanten & Darma, 2017). Another relationship that is important for

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 CASE STUDY 9.1 HMS LTD 5

the development of HMS is the relationship with financial institutions. For any company to have

an effective development, it is important for it to have good financing. For this reason, HMS

maintains good relationships with different financial institutions such as private equity firms as

well as banks.

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 CASE STUDY 9.1 HMS LTD 6

References

Chen, I. J., & Popovich, K. (2015). Understanding customer relationship management

(CRM). Business process management journal.

Kanten, I. K., & Darma, G. S. (2017). Consumer Behaviour, Marketing Strategy, Customer

Satisfaction, and Business Performance. Jurnal Manajemen Bisnis, 14(2), 143-165.

Munthiu, M. C. (2019). The buying decision process and types of buying decision

behavior. Sibiu Alma Mater University Journals. Series A. Economic Sciences, 2(4), 27-

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Prasad, R. K., & Jha, M. K. (2014). Consumer buying decisions models: A descriptive
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study. International Journal of Innovation and Applied Studies, 6(3), 335.
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