Marketing exercise _ Creating a Product

Answers in Blue

At home:1. think what to do

2. think how to it

3. buy the ingredients

4. make the jam.

GIVE TO MOMMY

NOT at home:1. think what to do

2. think how to it

3. buy the ingredients

4. make the jam.

Administration decides strategy

Marketing comes up with ideas

Research and Development

Purchase Department

Production

Marketing:

Øchecks commercial standards

Øforesees future sales for decision-making process

ØProduct’s profile; appearance, brand, association...

Ødraws customer type, market share..

Ødecides on adequate advertising

Ødistribution circuit

Research and Research and DevelopmentDevelopment

Works closely with Marketing Can be part of the Marketing

Department

Explain:The importance of Research and

Development

Research and development is very important in business because nowadays we live in a world where R&D is important in the market competition, production process, strategies and methods. R&D also deals with needs, demands and desires of their customers.

What departments take part in the creation of the product?

Which of these are associated to Head Office and which to Production?

Head Office:

•Shareholders•Administration•Finance•HHRR•IT and R&D•Marketing

Production:

•Production•Control •IT and R&D •Marketing (Sub - Departments)

Shareholders

IT and R&D

Legal (Outsource)

AdministrationProduction / ControlMarketing

Logistic (Outsource)

Finance HHRRPurchase

Quality Control

Sales and Distribution

TechnicalSupport

Laboratory

If you were part of the Managing If you were part of the Managing team, what questions would youteam, what questions would youask yourself before deciding onask yourself before deciding ona new product ? a new product ?

What to do and How to do it?

How is the design and appearance?

I would ask the share of the market and the costs and sales

And finally the ingredients or materials and the release date

Production Scheme

Use arrows to complete the scheme.

A new creationIngredients:

StrawberrySugarWaterJelly jam

Other necessary materials:

A glass potThe labelThe metal cover

What should I buy to make Strawberry jam?

Purchase Department

Purchase Manager: Job Description

In order to PROVIDE SUPPLIES:

he must Foresee future (not present sales) and then .. .

·Coordinate the timing of each supply and length of contract with each supplier and diversity of suppliers for each product:

Oops! I forgot to add the arrows again! (do them for me))

Supply

How long it takes to be produced?Bottles may take 15-20 days to be manufactured -Contracts for a fixed amount of fruit and sugar are

decided before they are actually planted -

How long it takes to arrive on time ( to be transported)?

Is it shipped, sent by truck...

How much stock of each product is necessary?What amount is needed?How much storage space it takes?Is it perishable?

Supplier Reliability Quality standard Percentage allotted Price and terms of payment:

Hey!All the

questionshave already been done for

me!

Based on what you know calculate the following for each supply

How long it takes to be produced?

ØGlass Pots are bought from a supplier, which take 5-15 days to be deliveredØThe metal covers are bough from a supplier, which take 5-10 days to be deliveredØThe labels are made in the plant, which take only minutes to be manufacturedØThe sugar, jelly and the strawberries are bought with the same supplier, which take 35-50 days to be delivered

How long it takes to arrive on time (to be transported)?

All the bought products (glass pots, metal covers, sugar and strawberry) are sent by truck. Glass Pots are bought from a supplier, which take 5-15 days to be delivered. The metal covers are bough from a supplier, which take 5-10 days to be delivered. The sugar and the strawberries are bought with the same supplier, which take 35-50 days to be delivered.

How much storage space it takes? Is it perishable?

There are two warehouse. One warehouse was especially build for the strawberries, it has a especial refrigeration system which makes last the strawberries, this warehouse has a capacity of 8 tons of strawberries. The second warehouse was build for the storage of the glass pots, the metal covers, jelly and the sugar. This warehouse of 300 m2 has a capacity of 30 tons of materials.

How many suppliers per ingredient?

Each ingredient or material has a principal supplier, but in case that the supplier fails, there is a second supplier.

Proceedure for Importing

IMPORTING(mainly emulsifiers, gelling agents..)

·Contact local agent··Ask for an estimate for a fixed amount or a time contract··Decide terms of payment and negociate best price ··Obtain sample··Obtain sample approval from Laboratory - technical staff· (usually the Quality Control and Research and Development Area)··Obtain certificate of approval from Gov. Sanitary Department··Order··Go through bank proceedure ( Letter of Credit,..)··Get agent to obtain custom clearance.··Run a trial test before using the product.

Finance Department

Marketing Department

Research and Development

Quality Control Department

Sales Department

Which Departments are in Head Office and which in Production?

Head Office Production

Which Departments are not directly involved?

Legal Department

Human Resources Department

Administration

IT Department

Maintainence Department

Revising:

IT Department

Distruibution Department

Purchase Department

MANUFACTURE -Production LineBluecollar workers -

skilled : to operate specific machinery non-skilled: factory hands

WHO DOES WHAT?

Machinery Blue collar workers

transportboxmixboilWashbottlefix labelCrush

transportboxWashaddSelectPeel

Quality control and Sanitary Checks all throughout production procedure.

Product (Development)

Sanitary Regulations (Research)

Proceedure (Research)

Quality Standard (Development)

Standarize Operation (Development)

R & D

Arrows! (Again Miss?)Which is Research and which is Development?

Standarized Production Operation:Ingredients; proceedure for each:Include Quality control and Sanitary Checks.

When all the ingredients are delivered and storage (Where there’s sanitary checks) the production process starts. The jelly jam is mix in a machine with water. Then the strawberries are cut, boiled and crushed. The strawberries are added to the jelly. This is mix for minutes by the help of a machine. Then sugar is added and the mix is boiled again, when the mix is at boiling point we get a liquid strawberry jam. This liquid pass through a quality control checkpoint and the through a refrigeration machine. The jam is done, now it’s packaging turn. The glass pots passed through a packaging machine where the pots are filled, the metal cover is put (close to the empty in order to maintain the strawberry taste) and finally the label. 5 of those finished jams are sent for a quality control check where they give the finally approval.

SALES AND DISTRIBUTIONArrows! (Again Miss?)

.

What distribution scheme is used? Who are your target buyers?

A local distribution scheme is used, where the target buyers are the local markets and people

DISTRIBUTION; EXAMPLES

FRESH FOOD (FARGO) -

Independent hired trucks with company logo and backing and set zones.Distributes directly to retail.

ARCOR -

Their own warehouses scattered throughout the country which distribute to supermarket and wholesale suppliers.

·Factory - In Arroyito, Cordoba·Warehouse - Ruta PanAmericana, Bs.As

·Large Supermarkets - Carrefour·Wholesale - Makro

DistributionDistribution

How would your product arrive to consumers?

(Note; your consumers are not your direct buyers)

There's a contract with a logistic company which takes our products and distributes them to local distributors, these locals distributors sell the products to retail stores or markets where the consumer can buy them.

What you’ve learnt:

I have learnt how difficult it is to make a company and to produce the finished products, and achieve a company’s objectives

Your conclusion on exercise: We want a 10- you ought to improve the conclusion to get

one!!!

NEVER wear pink to the office!