Structure

mission

Taking into consideration the wishes and needs of the consumer to offer to the consumer corn flakes produced from quality grain in Estonia on the basis of high technology, and through this form healthy eating patterns of the consumers.

vision
  • Maximization of the existing production capacity
  • Achieving 60-70% export share
  • Extending the assortment of production
  • Improvement of competitiveness
  • Increase of loyal "Helen" customers 10% per year
  • Ensuring the welfare and motivation of the workers
a long term strategic goal
  • · Maximum use of the existing production capacity

For the achieving of the long term strategic goal the company has set sub - goals (figure 1):

  • high quality product,
  • competitive ability,
  • more efficient distribution and promotion
the main sub-goal

1. Qualified labour force - specialized production assumes specialists with good training and as in Estonia we lack experience in working with the machines used in our production, the workers of AS Sangaste Linnas have been trained by Finnish and German specialists. From the beginning of the initial years of the factory the personnel has not changed. Every person has his/her place in the organization, certain work tasks accompanying this and responsibility for the results of his/her work results.

2. High quality production equipment - fully automatized German high technology is used. The production process is closed and dust free. The technology used is novel in Estonia. In the production process human labour is used at the minimum, mainly in the last stage of the process, i.e. on the packing line. The rest of the work is performed by the machines, the specialists only monitor the automatics.

3. High quality raw material - in order to ensure a high quality local domestic product there has to be high quality raw material. AS Sangaste Linnas has concluded contracts with grain producers, who grow grain of certain grade in accordance with the given quality requirements. The quality check performed in the factory is continuous, it starts from the moment of sowing and ends when the grain reaches the factory. The quality of every delivered batch is checked.

4. Quality check - in the production process above all attention is paid to cleanliness and this is done in every technological stage of production. The initial quality check is performed at the delivery of grain. When grain proceeds to the production process, it first of all passes through the cleaning cycle, whereas the sample is taken in the last cleaning cycle. The next quality check and taking of samples is performed in the peeling machine, after that the grain once again passes through the cleaning screen, where its correspondence to quality is checked. After that the grain goes into the cutting machine, where the grain is cut into three. Prior to pre-cooking a sample is taken, after that the grain is heated with steam for an hour. After that the grain particles are with a help of a roller machine crushed into thin flakes. The last production cycle is the most important one for the achieving of the high quality of the flakes. In the quality check system this process is paid most attention to.

the second sub-goal
  • improvement of competitive ability .

For this the assortment must be continuously extended, the products must have a competitive price. The main competitors of AS Sangaste Linnas are products imported from the European Union, not the local production. At pricing it has been proceeded from both cost as well as competition centred methods. "Helen" flakes are known to the consumer mainly by their quality and good taste properties, yet we cannot set a substantially higher price than our competitors, as the products are price sensitive. Hence, we proceed from a neutral price strategy, where most of the consumers consider the price and the value of the product right.
At the creating of the price strategy we have proceeded from the standpoint that the base prices are the same for all the clients we cooperate with. The sales prices differ only based on whether the procurers fetch the goods in the factory in Keeni, or we deliver them the goods using our transport. The payment terms differ between the clients. In general the payment terms for large clients are 21 and 30 days, for smaller clients 14 days.

the third sub-goal
  • · efficient distribution and promotion.

Proceeding from the sales strategy of AS Sangaste Linnas the distribution channel of the company comprises only a wholesale link, there is no sale to the retail network. The distribution channels have been chosen so that 75-80% of the retail network would be covered by "Helen" flakes. As at the present moment Estonian economy is still unstable, the company has not granted sole selling rights (exclusive right) to any of the wholesale warehouses. The distribution channels have been chosen so that 5- 6 larger wholesale warehouses in Tallinn having an Estonian wide distribution network and in every larger town still 1-2 smaller wholesale warehouses would be included.

Since 1995 the distribution channels have constantly changed due to the changes in the market. The most stable cooperation partner has been ETK-Hulgi AS. A survey on the distribution channels of AS Sangaste Linnas is offered under CLIENTS

The company has not considered the existence of the means of transport for the transportation of goods economically practical. Hence, we purchase the transport service from Estonian Cargo Lines. We transport the goods to the warehouses both in Tallinn and Tartu. The rest of the warehouses use their own means of transport to fetch the goods in the factory in Keeni.

advertising and sales promotion

At least twice a year an advertising and sales promotion campaigns directed to a target group are conducted.

The advertising messages, which AS Sangaste Linnas has used, are the following:

1. Stimulation of direct demand, where the main focus of the advertising message is put on increasing the demand and growth of brand consciousness. We have not provided an image advertisement for Sangaste Linnas or advertised the logo of the company. The advertisements have brought forward the logo of "Helen" brand and the stress has been put on the bringing the brand into the consciousness of the consumer. In the target group the product is known by "Helen" flakes, but many do not know the name of the manufacturer.

2. Approach focused on healthiness and usefulness, where the usefulness of the product to the human organism and the speed and convenience of cooking are described. As the products have been previously treated with hot steam in the production process, the morning porridge will be ready in 1-2 minutes. This saves both time and energy.

3. Stressing domesticity and neutrality. "Helen" products have been made from high quality pure Estonian grain. Additives have not been added to the products in the course of the production process, hence this is a 100% natural and pure grain product.

4. Different use of the products. In addition to porridge it is also possible to make tasty cakes, cookies, moesli etc. Along with the advertising texts we have always offered our own recipes.