Case 12: Mayu LLC: Summary

Case 12 : Mayu LLC
Summary:
Kate Robertson is the founder of the Mayu LLC, a company which sells hand knit fashion
accessories made with pure Peruvian alpaca fiber by the artisans. Mayu is a successful company
which strives to be the industry leader in the scale of high quality and ultra classic alpaca
accessories. Mayu's products were charged higher priced because Kate believed that the ultra
classic products were worth of that price. Mayu focused on e-commerce based business. They
have been able to grab many customers through their website and online.sources. Regarding
Mayu Kate faced many problems but gradually she had found the solutions to the problems.
Among the problems one of the major obstacles was communication and transportation risk.
Also the artisans played a vital role in Mayu because the products are made by them. Kate had to
deal with the problems of the artisans as well. To establish a great brand value of Mayu, Kate
adopted online promotions. She tried to reach as many retailers and wholesalers as she could.
She had order of only $500 at the initial year but she gradually increased the amount of orders
and margins afterwards. To take the business to next level Kate planning to hire a fashion
designer. She is doing what it takes to apply her creative visions into reality. Now is looking
professional photographer, a clothing model to optimize her website. Thus it could allow Kate to
have more orders in future and bring more success to her business.
Problems
1. Driving the customers to the website:

Kate was facing problems regarding his website visitors. They were not adequate. She needed to
drive more customers towards her website.
2. Limited marketing budget :

Kate was willing to increase her sales and for that she needed to spend more on marketing. The
problem was her marketing budget was limited.
3. Higher priced products :

Mayu's products were highly priced. It’s difficult to sell high priced products to the retailer’s or
wholesalers. So she found it difficult to convince the buyers to invest in such products worth of
highly priced.
4. Small order and margin :
During the initial years of Mayu, Kate received very small amount of orders and margin were
also not satisfying. The minimum order was only $500. Small amount of orders and margins at
the initial years sometimes demotivate entrepreneurs to invest further.
5. Hiring good sales representatives :

A good sales representative can easily convert a viewer into a buyer. He can establish a good
value of the product in the buyers mind. Kate was in search of good sales representatives for
Mayu. On the other hand hiring good sales representatives can decrease his profits.
6. Gaining brand recognition:
Brand recognition for any business is a great achievement to sustain it further. Kate as trying to
gain brand recognition of Mayu during it’s initial years.
7. Communication problems :
The artisans of Mayu were not computer literate and they did not have consistant access to
cellphones. Though Kate could easily communicate via telephone or email while staying in
Chicago but the artisans found it very difficult. Thus it resulted in communication problems.
8. Dishonest artisans :
Dishonesty is a big problem within an organization. The artisans of Mayu were very dishonest.
They claimed that certain product will arrive in certain date but in reality they are not even knit
yet.
9. Ensuring product quality and consistency :

Quality is a major concern for any company. Also consistency is very important. Kate was facing
many problems in ensuring the product quality and consistency.
10. Travel distance :

The Mayu’s artisans have to travel long hours to access their banks and deliver there shipments
to the federal express. There is always a risk that a large amount of money any and products can
be stolen on the way of transportation.
Recommendations
For the recommendations the possible solutions to the problems which Mayu faced are as
follows :
1 . Online promotions :
To drag more consumers into Mayu’s website they should focus on online promotions of their
site. They can also give advertisement of their site in many other popular vlogs and sites.
2. Increasing marketing budget:

Mayu can increase their marketing budget by taking loans from bank. They can also decide if
they can spend much on marketing and then increase the budget.
3. Sample orders :
As the Mayu are sure that the high priced products are worth so they can provide sample order
facility to their wholesalers and retailers so that they can determine the value of the product and
recognize the use of consumers. It it’s worth then they will receive regular and big orders.
4. Setting average price range:

If the Mayu had set up average range of price in its initial years then they wouldn’t receive such
lower amount of order and margins.
5. Hiring trained sales representatives:

Kate is looking for good sales representatives. If the sales representatives were trained enough
then they would be able to establish a great brand value in the customer's mind. So, she can look
for sales representatives who are highly trained.
6. Train the artisans about computer :

The artisans at Mayu didn’t know how to use computer. They can’t make proper communication
through computer. In this case they should train the artisans about proper use of computer.
7.0nline banking:
As the banks were very far then Mayu can use the online banking to make their bank transaction
more secure.
8. Adopt insurance policy:

Mayu’s products stay at travel way for a long time which there is high possibilities of the
products being stolen. So, they should have insurance of the products during transportation.
9. Establishing a good quality control department :

If Kate could easily establish an organized quality control department then they could easily be
sure about the quality and consistency of their products
10. Making everyone accountable for dishonest means :

If any issue arise from the dishonesty of an employee then Kate can charge penalty money to all
artisans which will be cut down from their salary. By this way everyone will be aware if anyone
is being dishonest about any order or work.

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Case 12 : Mayu LLC

1. Driving the customers to the website:

2. Limited marketing budget :

3. Higher priced products :

5. Hiring good sales representatives :

9. Ensuring product quality and consistency :

10. Travel distance :

2. Increasing marketing budget:

4. Setting average price range:

5. Hiring trained sales representatives:

6. Train the artisans about computer :

8. Adopt insurance policy:

9. Establishing a good quality control department :

10. Making everyone accountable for dishonest means :

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