Question

Write a summary section outlining why your product or service idea would be successful relative to the critical decision areas of the course. (Use Chapter 1 along with the other two sections of your report to help you with this.)

Answer 1

Vision : products successful launch via quality manufacture and maximum profits via its sales worldwide.

Mission : critical aspects of product manufacture and sale strategies inorder to increase its chance of success.

Objective : find out critical areas that risks / effects quality and pricing of product which directly effects product success in market.

Production and distribution strategy :

* produce product X in sucha way that it reaches in right value of right price from right place to right person.

Critical decision making areas :

1.priliminary stages of production :

* raw material selection / production equipment has to be decided such that

• Raw materials are obtained at lower / optimal cost.

• Machinery utilises optimum power to maintain reasonable cost.

* Processing costs are minimised on placing working units as near as possible to regulate transportation cost

* supplier of raw materials :

• Opt few options of suppliers regularly inorder to creat price related benifit agreements.

* Thus in this way , in each step of priliminary decisions of production care to be taken that minimal / optimal costs are only made.

2. Pricing techniques

* while pricing care to be taken that price is in excess of cost but lower than / equal to competitive goods.

Eg : 1 products production costs is 1$

The competitor good is of price 2 $

So now company X if puts its good price 1.5$ that enhances its market capture and products success.

3. Selling techniques :

Sale the product initially in such a place where its use is maximum / high rate of product absorption / huge customer attraction towards it.

Because this minimises risk of return and surely attains profits.

4. Distribution areas :

When company X wants to sale its product worldwide. It is better to creat an app and few distribution centres for class of products such that transportation cost takes place only on order made.

Unnecessary transport charges of all products and product not sold at last increases cost of transport and reduces profit realisation.

5. Advertising areas :

Cheap and best advertisement methods like social networking adds.

Taking youtubers as ambassadors / models / paid partners

Creating hoding in backward areas.

These kind of techniques target specific no.of customers and raises minimum returns for promotion costs.

6. Taste and preference segment :

In u.s you cant go and sell afgan burkas / saudi hijabs. Cause they dont use that products in large.

But a comforter is used in all countries worldwide. Especially during winter. And as a AC set in summer.

So seasonwise capture worlwide can enhance the products sale rate.

7. Options :

Eg : dairy milk is a succesful cadboury company which gives varieties of choclates every year.

In almost all products the base cadboury remains same but minimal changes of moulds / flavours / top ups is made.

Thus the production cost of all products remain same upto 70% of production procedures.

This kind of equipment installations creat less cost for new products and more variety options to customers.

8. Human resource requirement :

A large requirement of human resource is necessary to X company in various stages/ departments of work.

Thus , opt countries where you can pay less to employees than those areas that has huge payment demand.

Eg : production process stages are to be done only at nearby workstations but departments like marketing / afvertising need not be in specific place.

So co can opt places like india , indonesia , china etc fot such departments.

9. Feedback

Once your product reached market that alone doesnot serve youre purpose.

Customers have to use them , like them and habituated to them for consistent profits.

So ensure customer is satisfied from your product and verify if any improvements / specifications required for them from your product and try to implement them.

10. Consistent strategies

Once a strategy served your purpose , then try to understand and analise the reason of its working and area of customers / end users it attracted.

Document the same.

Use it whenever required with mild modifications as pet situations.

Eg : strategy you used to attract customers is " quality enhancement " then employ it in every new / modified product you produce.