Case Study No. 2 The management of Yummy Noodles Company was contemplating on in

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Case Study No. 2 The management of Yummy Noodles Company was contemplating on introducing 200 grams pack of savory noodles into the Indian market at Rs. 10 per pack. This was only for one month which was construed to be as a test marketing period. During this period, the Company wanted to have a "blitz" strategy of flooding the market with their product. In the subsequent month, the management of Yummy Noodles Company had planned to raise the price of the pack to Rs. 15, while the weight of the pack was to be fixed at 250 grams. A free gift in the form of a plastic bowl with a spoon was also planned Two months before the launch of the actual production, the marketing department of the company brought out advertisements regarding the savory noodles. The advertisements were displayed on bill-boards, TV, radio, print media. Schools and colleges were also targeted to rope in students and children to buy the product. Production of the noodles was planned to be started along with the marketing program. The forecast of the number of expected packets that could be sold for the first month was around 75,000, and 1,25,000 for the second month. The production was required to be started earlier to meet the target of projected demand as well as to account for the changeover in the pack-size in the second month You are appointed as a log istics consultant by the Company. You are required to guide the Company regarding the following a) The Company is very keen that its product must be well-received in the market. What coordination is required between the production, marketing and other departments of the Company? (Note: You are required to spell-out the various departments (namely, ware housing, production, quality control, packaging, etc.) that are expected to be required in the Com pany) b) Explain the role of the Logistics Department in the introductory phase. [Note: This pertains to Logistics Planning and Process] c) Highlight the necessity of information sharing between the various de partments [Note This relates to productivity increase due to Logistics Process d) As a logistics consultant, you are required to foresee the type of difficulties which the company could face during the changeover. Give suggestions to the Company to tide over these d ifficulties. e) Critically examine the free gift scheme and marketing strategy adopted by the company

Explanation / Answer

a)

e) Yes, I agree that free gift is a marketing strategy and it has been introduced just to attract the target audience. Any time a product is new it becomes very important for any company to display some offers and attract the customers. It is a normal tendency that any product is new it is not usually encouraged by many customers in the market. So, this is one of the strategy usually company does to attract the customers. Especially when something is given for free along with the product customers want, it is easily being recognised by the customers and they transform to consumers if the product is really worth it.

For a product to be well received in the market there are many departments who needs to work along and make it a success. Below are the points which needs to be well coordinated

b) Logistics department plays a vital role in the introduction of the product. It is a part of supply chain management and it is involved in end to end process right from planning until the product becomes successful. It plays an important role between source of demand and source of supply. Logistics team need to make sure the customer needs are met by supplying the products at the right time without any delay. Also the team needs to be co-ordinate between many teams in the organization like production, warehouse, Distribution, shipping and marketing team to ensure there is a proper coordination and no delay in any of the process which can lead to the success of the product in the market.

c) Information sharing is very important with all the teams in an organization. Any information related to the product should be flown to all the departments to ensure evert team do their job at the right time and contribute towards the success of the product. If one knows all the information and other team does not know there are chances that expected delivery may not happen. Each department in the organization are interlinked to each other and ever department should what is happening in another department to manage the supply and demand of the customer.

d) Anytime the change is inevitable and if the change is for good it is always good that it has to be implemented. Anytime there is a changeover there are many difficulties which needs to be faced. The usual seen difficulties are,

The production department will need to ensure that goods are packed and produced in time to warehouse department.

Warehouse team will need to ensure that all the goods are ready to be shipped.

Shipping team will need to ensure that goods are reached to all the target stores for sales purpose.

More than everything marketing team will have to advertise the product on the release date, venue of the product availability

The production and distribution team will need to ensure that the demand and supply are in sync and there should not be any delay in the product supply.

Reluctant for acceptance by target audience

Difficulty in understanding the change

Risk of failure

Cost associated with the change

Making sure that all are well informed about the change in any organization

To overcome all the difficulties it becomes a primary responsibility of a logistic consultant that planning is done well in advance. A SWOT analysis to be done to understand the strength, weakness and work towards it even before the change happens. Planning, implementation and coordination in the company becomes important and a consultant will need to make sure all the people who are involved are well informed and a plan should be provided with options of what needs to be done.

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