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Strategy Implemented
Strategy Implemented
Fame and Profits are the main criterion for a company’s growth measurement; therefore, it is
given to increase these parameters for any company. Hence a necessity for a strategy, and we
are discussing the same here and its implementation. Today, simulations have become a very
essential part of any strategy. For this we used SAP ERP software. The strategy discussed
below is formulated from the practice rounds, we had calculated and analyzed the sales
forecast and Marketing report based on this analysis we had implemented the following
strategy for the better results.
The following table gives an overview of the Starting Strategy for production planning.
1
Production planning
We had concentrated muesli production on a single production line and can only produce
single product at a single point of time the line will operate 24 hours in a day and the number
of boxes that can be made depends on the hours it is allocated.
For the initial production of this round, we started with it a single flavor and started
producing it for three continuous days so in total we have produced a single product for 72
hours. Initially we produced a 500-gram boxes for 72 hours and then after that we started
producing one-kilogram boxes for around 48 hours. We started using this strategy to reduce
the change-over time as this means losing so much of production hours.
After two cycles of this production analysis, we started using other production strategy to
keep up with the market and sell the product in the market. Then we also started analyzing
which type of product is in demand and in what king of market. Accordingly, we produced
the products and made them available immediately in the market for the customers.
At the end of the round, we will have to produce and sell about 3,36,000 Boxes of 500 gm
products and 96,000 boxes of 1000 gm products.
Marketing strategy
Marketing plays a key role for every business and is also the same with ours. Initially we give
the budgets for the three market regions in the software, depending on the number of stores in
a region the budget has been allocated, the more stores more the budget allocated. Applying
this strategy, initially the sales peaked within a very short time.
After the first round of marketing strategy, we have seen the data and analyzed it and then
allocated the marketing budget accordingly to each area or each location so that we can sell a
greater number of products and generate much greater revenue.
Marketing budget is allocated in such a way that we can generate maximum sales and
generate good amount of revenue for each cycle.
Pricing Strategy
Pricing plays an important role in sales, to generate more sales the price should be affordable
to the consumer so that they can buy the product. In our case we maintained the price always
affordable to the consumer, so that we can generate more sales and gain much profit.
2
We maintained our initial pricing very low or minimum or basic so that the sales can be
generated easily when the sales are nearly peaking in a single location or at a single store, we
immediately increase the price because of the demand for the product is increased.
After increasing the price, the sales in some places were very low and our inventory has been
growing very huge so to reduce the storage costs and inventory costs we have reduced the
price and maintained it for some time so that we can clear the inventory and sale our products
at different locations
We utilized this pricing strategy in order to generate sales and create demand for the product
in some locations as well as generate profit when we have more demand for the product this
is the strategy we have utilized in different cycles and generated more sales that implies we
have also generated more revenue.
4
Raisin Muesli. And, we have inventory for F02, F05, F11, F12, F14 which is very less
quantity.
5
products of 500 grams Mixed fruit Muesli because of more demand on that product and made
less targeted Quantity on day 7 to maintain the well managed inventory.
Inventory overview
In the final round we are successful to maintain the well managed inventory. We don't have
no more inventory for the products 500 grams nut Muesli, 500 grams raisin Muesli, one
kilogram nut muesli, blueberry Muesli, strawberry Muesli and Raisin Muesli. we had some
inventory at the end of the round for the product 500 grams Original Muesli.
Market overview
In the final round we have less market shares because we made production orders very low.
we got highest market shares for the product 500 grams blueberry Muesli in the three regions
because we had made more targeted quantity of production orders. in the north region 500
grams blueberry Muesli got highest market shares approximately less than 120K. We got
very lowest market shares for one-kilogram original Muesli because we didn't produce any
quantity of products.