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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.

Start time End time No. Of Products Type of Product


Day1- 00 Uhr Day1- 24 Uhr 24,000 500gm F01
Day2- 00 Uhr Day2- 24 Uhr 24,000 ,,
Day3- 00 Uhr Day3- 24 Uhr 24,000 ,,
Day4- 00 Uhr Day4- 08 Uhr Change over
Day4- 08 Uhr Day5- 08 Uhr 24,000 500gm F02
Day5- 08 Uhr Day6- 08 Uhr 24,000 ,,
Day6- 08 Uhr Day7- 08 Uhr 24,000 ,,
Day7- 08 Uhr Day7- 16 Uhr Change over
Day7- 16 Uhr Day8- 16 Uhr 24,000 1000gm F16
Day8- 16Uhr Day9- 16 Uhr 24,000 ,,
Day9- 16 Uhr Day9- 24 Uhr Change over
Day10- 00 Uhr Day10- 24 Uhr 24,000 500gm F03
Day11- 00 Uhr Day11- 24 Uhr 24,000 ,,
Day12- 00 Uhr Day12- 24 Uhr 24,000 ,,
Day13- 00 Uhr Day13- 08 Uhr Change over
Day13- 08 Uhr Day14- 08 Uhr 24,000 500gm F04
Day14- 08 Uhr Day15- 08 Uhr 24,000 ,,
Day15- 08 Uhr Day15- 08 Uhr 24,000 ,,
Day15- 08 Uhr Day16- 16 Uhr Change over
Day16- 16 Uhr Day17- 16 Uhr 24,000 1000gm F15
Day17- 16 Uhr Day18- 16 Uhr 24,000 ,,
Day18- 16 Uhr Day18- 24 Uhr Change over
Day19- 00 Uhr Day19- 24 Uhr 24,000 500gm F05
Day20- 00 Uhr Day20- 24 Uhr 24,000 ,,

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.

Results and analysis from Round 1


Production order analysis
from the graph we can observe that we had made production order of approximately 1,50,000
on the day 4 and got confirmed on the same day and approx. 2,00,000 orders on day 5. On the
day 6 we had made the order two times because of demand and on day 10 we placed more
order quantity and it have been confirmed.
Market Overview
we got the More market share for 500 gm Blueberry muesli in the three regions compared to
the remaining products and we got the lowest market share for the 1 kg Original Muesli. For
the North zone we got the more market share for every product.
inventory Overview
Inventory plays the important role in company revenues. if we are maintaining the excess
inventory, that we are indirectly decreasing the profits of the company. we had maintained
the well managed inventory. After round 1 in the inventory we are only left with very less
products of NN-F05.

Results and Analysis for Round 2


Production order analysis
In round two We had made production order for only three days because we had excess
inventory and overstruck in the stores. the sales R very low at the starting of the round and
we have managed to sell the products before d day 8. we made targeted quantity order of
3
40,000 products and got confirmed made one more production order which is about 24,000.
finally, we have made purchase order of one 1,40,000 products and got confirmed by the
supplier.
Market overview
In round two also we got highest market share for 500 grams mixed fruit Muesli, but we got
more market share for the South region, and we got approximately save market shares for the
remaining products indie 3 regions. for one kilogram Raisin Muesli the market shares are
very low in the three regions. The overall market share of 500 grams mixed fruit Muesli in
the South region is approximately 800 K.
Inventory overview
At the end of the round two we don't have any access inventory for the products F 01, F 02
and F16. We have the more inventory for the product F05 which is 500 grams strawberry
Muesli, and we have lowest inventory for the F03 and F13 which are 500 grams nut muesli
and one-kilogram mixed fruit Muesli.

Results and analysis for round3


Production order analysis
Based on the previous round results and analysis we are concentrated on the production order
because of high sales demand. We made more target quantity order about Approximately
200000 products and got confirmed. We managed to sell our products before Day 10, and we
made again product orders three times on day 10 for 2 different products Richard F03 and
F04.
Finally on day 11 and day 20 we made product orders approximately less than one lakh for
the same product.
Market overview
We got less market shares compared to the previous rounds. In this round we got more
market shares for one cake mixed fruit Muesli in all three regions which is about almost equal
to 700K market share. We got less market shares for the 1-kilogram original Muesli and 500
grams what original Muesli but for 500 grams Virgil Muesli it got lowest market share for
South region.
inventory overview
In this round we managed the inventory very well at the end of the round, but we have the
inventory more for the products F04, F06, F 13 and F15 which are 500 grams original
Muesli, 500 grams strawberry Muesli, one-kilogram mixed fruit Muesli and one kilogram

4
Raisin Muesli. And, we have inventory for F02, F05, F11, F12, F14 which is very less
quantity.

Results and analysis for round 4


Production order analysis
In round 4 we have ordered less targeted quantity 2 degrees Dover stock in the store’s
shelves, so we have ordered targeted quantity on day 6 for the product F04 because F04 has
more demand in the market we have ordered 500 grams Raisin Muesli. And, we have made
two more orders on day 8 for the products Raisin Muesli and original Muesli of same
quantity.
Market overview
In this round we had constant market shares. we got the highest market shares for the product
500 grams Blueberry Muesli and 500 grams Strawberry muesli, but 500 grams blueberry
Muesli got highest market shares approximately more than 800K. because of low demand for
the product one kg original Muesli from round one it has lowest market shares compared to
other products but by changing the pricing of this product and increasing marketing we had
increased market shares little bit for this product than previous rounds.
Inventory overview
At the end of the round 4 we have more inventory because of this inventory we got some loss
in there well overall revenues. in this round we have highest inventory for the product 500
grams original Muesli and one-kilogram original Muesli And we had no inventory for the
products like 500 grams raisin Muesli and one-kilogram mixed fruit Muesli. We are managed
to maintain less inventory for remaining products.

Results and analysis of round 5


Production order analysis
In the previous round we have more inventory in the stores shelves so we had minimized
targeted quantity orders in the final round because if we have inventory at day 20 in shelves
then it is a loss for the company profits because we cannot sell remaining stock in the final
day so we had made only targeted quantity orders for two days. We have ordered 140K

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.

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