Posted on : 2022-10-30 18:36:15
Article : Good morning, Monday perceptive Management solution for TASK 214- M/S Soundarya planned and adapted their novel operations strategy. This enhanced more markets presence and gained greater market share with controlled costs.
To meet the consumers and markets demand on products choices M/s Soundrya has planned to add more product range and product/brand variants. In their proposed plan they wished to add bathing gels and liquids to the existing bathing soaps, seasonal body care lotions in addition to existing body creams and talcs, and more Hair shampoo product variants both liquids and hair gels are planned. All ranges will have more SKUs in their product basket.
With limited resources of manufacturing space and finances Soundarya cannot expand their manufacturing facilities or open new manufacturing plants in different areas. To ease this situation, they felt the best way is to go for co packers in different states. This arrangement is not investment oriented except supply of raw materials and packaging materials to the new co-packers and this also offers an opportunity for early market reach with controlled costs of logistics due to lowered geographical operation space. Their second priority to go for more diverse supplier vendors in each state of manufacturing is to be more cost viable and effective thoroughly maintaining the product quality. All these planned changes have raised confidence of stake holders and encouraged them with more investments into Soundarya.
After thorough market study and keen efforts on execution they have implemented their plan of co packers manufacturing arrangement, market reach logistics and organizing diverse suppliers for different regional units. In Three months of its operations with changed operation systems, Soundarya could increase their sales by 15% mostly in the new products variants. This is an overall change of operations for Soundarya which is a midcap company. This made them open to market extensions with more manufacturing facilities with no new investments and could offer business opportunities for more diverse supplier vendors, as well as excess capacity utilization facility for many small-scale personal care product manufacturers.
End point- In medium scale companies when the markets are becoming fiercer with competition, the only route and scope open is to plan a strategy for market extensions aligning with more small-scale manufacturers for co packing facilities and encouraging diverse suppliers with leverage for cost reduction on supplies not compromising the quality. This helps the companies to extend markets and maintain their market shares undisturbed due to competition.
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