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 logistics 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, warehousing, production, quality control, packaging, etc.) that are expected to be required In the Company)

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 departments [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 difficulties.

e) Critically examine the free gift scheme and marketing strategy adopted by the company

Answer rating: 100% (QA)

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 som... View the full answer