The issues behind the Marketing Strategy Essay Example

) distribution for a figure of representative merchandises packed on Lines # 1, 2, and 3 over the last 7 old ages. By analyzing the information set 1 produced, it can be stated that the no of entire samples increased every twelvemonth which means that regular invention was being carried out in the last 7 old ages. The volume of most of the merchandise was increased in the following twelvemonth and so the twelvemonth after and so on. 6 old ages ago, Rumack had 4 merchandise under the class of fewer than 500k bottles and it was 66.66 % of that twelvemonth's production. Following twelvemonth, the same class was increased to 5 and the per centum increased to 71.42 %. The one-year measures kept on increasing until the current twelvemonth where the volume is 15 with the per centum of 75 %.

Other bigger volume classes besides increased twelvemonth after twelvemonth. Rumack had 1 merchandise each in 501k-1000k and 1001k-1500k bottles 6 old ages ago. Three old ages subsequently these figures increased to 2 and 1 severally, and besides 1 merchandise came in the class of & gt; 2001k bottles. It has been analyzed that the highest measures were achieved in the current twelvemonth where 15 ( 75 % ) merchandises fall under the class of & lt; 500k, 2 ( 10 % ) in 501k - 1000k and 1 ( 10 % ) each in 1001k-1500k, 1501k-2000k and & gt; 2001k. The maximal no of samples was produced in the current twelvemonth which is 20, which is 70 % addition over the last 7 old ages.

It has besides been analyzed that the new merchandise is

ever produced in less measure so that their market response can be tested. If there is a success so these merchandises can be produced in larger volumes. With mention to the fond regard 1, it can be stated that Rumack Pharmaceuticals had the minimal per centum of 66.6 % in their lowest class of production where all the new merchandises are ab initio launched. The maximal per centum of approx 79 % has been achieved under this class two old ages back.

Data Set 2 ( Attached )

Remarks ( Data Set 2 )

As mentioned in the remarks of the information set 1 that all new merchandise is introduced in the lowest volume class so that their market response could be tested before their high volume production. Data set 2 represents the one-year measure ( 000s Bottles ) distribution for a figure of representative merchandises packed on lines # 1, 2, and 3 in footings of the twelvemonth of debut and the 2 old ages following the debut. The information set 2 aid is analyzing the new merchandises launched over the last 7 old ages and besides their advancement in the following 2 old ages of their debut.

It has been analyzed that 6 merchandises were introduced by Rumack Pharmaceuticals 6 old ages back. 4 under the class of & lt; 500k and 1 in 501k-1000k and 1 in 1001k-1500k. After one twelvemonth, production of one of the merchandises was increased and it was moved from the class of 1001k-1500k to 1501k-2000k whereas the remainder remained the same. After 2 old ages, these merchandise were analyzed once more and it was noted that the merchandise from the class

of 501k-1000k has been moved to 1001k-1500k. The merchandise which was introduced 5 old ages ago ab initio came in the class of & lt; 500k, after one twelvemonth it was moved to 501k-1000k and remained in that class boulder clay current twelvemonth.

It has been analyzed that merchandises were ab initio introduced in the lowest volume class and with the clip when their demand was increased, their production volume was besides increased significantly.

Overall Remarks ( Data Set 1 & A; 2 )

By analyzing information set 1 and 2, it has been observed that Rumack Pharmaceuticals have been increasing their production volumes each twelvemonth and new merchandises have besides been introduced continuously. This shows that their merchandise demand is high in the market and it has increased the work burden within the administration. Procedures and substructure have been designed and improved continuously to provide the high demands of the market and run into the agendas.

Batch Size Quantities on Line 1

CHART 1

Chart 1 has been produced by utilizing exhibits 4 and 5. Values have been derived by utilizing the computations as attached in Appendix

( a ). It has been observed that there is a changeless lessening in the mean batch size every twelvemonth. The graph line is worsening every twelvemonth as can be seen in chart 1 above. The mean batch size values in each twelvemonth are:

The decrease in the mean batch size is straight affected by the necessity of Rumack Pharmaceuticals for bringing forthing a wide scope of merchandise. Harmonizing to Hill ( 1991 ), lessening in the mean batch size could besides intend that there has been increasing in the set up at the same clip and hence it has affected the production volumes in Rumack Pharmaceuticals. Small batch sizes will hold greater setup times as it is necessary for the alteration of the merchandise type.

Procedure Agreements and Market Fit

Capacity

Assorted schemes have been used in the instance survey of Rumack Pharmaceuticals for their production lines. Line 1 is used for two merchandises i-e Restolvic and Hedanol, for making filling and packaging. The two merchandises have the same bottle sizes and hence that is the ground for the choice of these merchandises for line 1. Three different types of bottles are being used in line 2 where the difference is merely in the tallness of the bottles. Rumack Pharmaceuticals utilizes line 3 for their liquid merchandise merely. There are five different sizes of bottles being used in line 4 which involves twelve different merchandise types. Hill and Hill ( 2009 ) states that, if procedures are non extremely utilized for one merchandise, they need to be chosen so that they can be used to run into the demands of the other merchandise. Harmonizing to Hill ( 1985

), an administration largely a fabrication administration, need to separate between the engineerings required to do or develop specific merchandise. As Rumack has a big assortment of merchandise, hence the company is confronting the followers.

1. The high degree of engineering to be implemented within the procedures
2. High outgo of production.

Merchandises in lines 1 and 2 are of the highest demand and therefore precedence is given more to lines 1 and 2 so that Rumack can maximize their capacity to run into the needed agendas. Whereas line 3 and 4 has spare capacity and the current demands can be met easy. Extra equipment will be required if OTC merchandises are to be packed on line 4. Capacity can be seen as organizational success and hence Rumack can utilize their trim capacity efficaciously and expeditiously by: -

1. Getting extremely skilled workers
2. Adequate machines

Broadening Product Range

In the current state of affairs, broadening merchandise scope could be critical for Rumack Pharmaceuticals. A critical analysis would be required to calculate the future demands of the market. Broadening merchandise scope can impact the current procedures and production volumes and hence could finally impact the client demands. It can besides be stated that heightening the merchandise scope will necessitate more alterations in the bing equipment for the processing and packaging of merchandise. The alteration in the procedures will be extremely expensive and will besides ensue in the addition of set-up times. However, it can besides be stated that broadening merchandise scope can besides ensue in success in the market and could finally ensue in high gross revenues and net incomes. Therefore the critical analysis is required by the higher direction of Rumack

Pharmaceuticals to calculate their hereafter demands and compare them with their current procedures and substructure. Hill and Hill ( 1995 ) provinces that by heightening the merchandise scope, production volumes can acquire affected as there will be the addition of set-up times which will do lower production volumes. Hence the ultimate end of Rumack Pharmaceuticals should be to:

1. Addition in productiveness by utilizing bigger batch sizes
2. Decrease in setup and changeover times.

 Source of Problems

Harmonizing to the given instance survey, Rumack Pharmaceuticals have been able to use their selling and fabrication schemes to run into their organizational ends. However, one job which has been noted in the instance survey was the inability of the direction of Rumack Pharmaceuticals who could non anticipate the speedy encouragement in the demand of Restolvic. Due to this rapid addition, Rumack relocated Restolvic to the new works in Bakersfield. Harmonizing to Jim, the Bakersfield works were planned 9 old ages ago with sufficient floor infinite and installations to their future growth. However, by the transportation of Restolvic and the rapid development in demand, Rumack started confronting jobs related to absorbed floor infinite and quickly full production of the works. These resulted in jobs to the administration but one of the cardinal jobs was related to packaging.

Rumack Pharmaceuticals has already identified a possible solution to the above-mentioned job. Rumack has planned to put and alter their existing equipment i-e portable filling station, lines, etc and heighten their capacity in the packaging country by adding more floor infinite which is about 50 % of the bing floor infinite required for each packaging line. This would take in uninterrupted widening of their merchandise scope

and acquiring high net income returns.

Exhibit 7 relates to the set-up / change-over agreements within Rumack Pharmaceuticals. It shows the no of hours it takes to alter the merchandise and packaging in different lines and besides alteration in bottle sizes. It explains the attack to finish the necessary set-ups and change-over on the four packaging lines. It states that it takes 4 hours to alter the product/packaging in each line, whereas bottle-size alteration takes 5-8 hours.

The correlativity between run size and end product per hr based on the representative sample of merchandise packed on line 1

Large batch size is used for the production in large measures. It besides explains that the tally sizes are large when the mean Numberss of bottles produced per hr is large. It can be stated that Rumack Pharmaceuticals seek to diversify their merchandise by bringing forthing in high volumes at the same clip.

Order Winners and Qualifiers

Hill ( 1995 ) states that qualifiers refer to the standards of acquiring the merchandise into the market and supplying the chance to vie with its rivals, whereas victors are those merchandises who have gained a competitory advantage over its rivals who have besides qualified to be in the same market. Order qualifiers and victors are both clip and market-specific and hence they are different from market to market and can alter with clip. Hence the market would necessitate Rumack Pharmaceuticals to go on heightening their merchandise types and maintain increasing their production volumes. After opening works in Bakersfield, Rumack decided to utilize three indistinguishable procedures for their three packaging lines which resulted in equal benefits for technology, support, and care. This resulted in better

quality and proficient support in Rumack Pharmaceuticals. Therefore by maintaining high-quality criteria, merchandise scope, proficient competence and support lead Rumack Pharmaceuticals to order qualifier and victor ( Hill 1993 ).

Merchandise Profiling

Harmonizing to Hill and Hill ( 2009 ), merchandise profiling is a tool and attack which is used by an administration to measure the degree of tantrums between demands and proviso or look into the future degree of tantrums in the visible radiation of alterations. It besides states that merchandise profiling enables a company to prove the current or expected degree of tantrum between the demands of the market and the features of its bing or proposed procedures and substructure investing.

Harmonizing to Anderson ( 2010 ) Merchandise profiling will let Rumack Pharmaceuticals see their fabrication strategic feedback in their market. Product profiling is an appropriate tool for Rumack Pharmaceuticals as harmonizing to Hill ( 1991 ), it will enable Rumack to: -

Measure the incompatibilities within the procedures and better the degree of fittingness between the manner Rumack wins order in the market and the ability of fabrication to prolong the market demands.

The merchandise profile of Rumack Pharmaceuticals has been created by using the different variables ( Jobbing, Line, Batch, and Continuous treating ) as mentioned in Anderson ( 2010 ) for better apprehension and analysis.

As mentioned in the instance survey that Rumack has been presenting new merchandise over the last many old ages which has resulted in high demands and net income borders. It can be stated that there is a correlation between the new merchandise introduced and the order size. Product profile provinces that with the addition in demand over the last few old

ages at that place has been no alteration in the engineering and procedure flexibleness which has created jobs at the operational degree. Due to the broad merchandise scope, the set-up times have been increased ensuing in lower production volumes. There is an addition in the costs and lessening in procedure efficiency as the rapid growth and demands can non be catered to by the company efficaciously and expeditiously.

Decision and Recommendations

The scheme option that can be suggested for Rumack Pharmaceuticals is proficient, process alteration and market. All these scheme options are closely related to each other and play a critical function in the success of an administration by running into their aims ( Anderson, 2010 ).

Presently Rumack Pharmaceuticals has adjusted its market to high volume and broad scope of merchandise. The strategic attack of the company should be focused on the organizational ends. As the company requires engineering to do their merchandise as per required criteria, hence acceptance of high-tech machines could be one of the attacks. Rumack has been utilizing simplified procedures for their production of merchandise as the same bottles have been used to bring forth different merchandise. Some merchandises have the same bottles but different highs. This attack plays a critical function in cutting downing costs and operating expenses in the administration. Hence Author suggests these simplified procedures to be carried frontward in the future. Manufacturing restraints can be used as a platform for the pick of procedures as it will help in getting the better ofing the bing issues. Likewise, order winning and measuring uping features are the chief factors for taking an appropriate procedure. The author besides suggests the usage of

batch procedure in Rumack. Hill ( 1991 ) states that administrations choose an appropriate procedure based on volumes. It besides states that batch procedures are frequently found in fabrication administrations that provide different merchandise and services as it helps in using the works in different ways. Therefore Rumack should go on utilizing the batch procedure for their broad scope of merchandise through the same set of procedures.

Harmonizing to Hill and Hill ( 2009 ), strategic options can assist in placing the market aims and the appropriate selling scheme. Presently as shown in the instance survey that Rumack has a broad scope of merchandise with immense volumes as they are in high demand in the market. The current scheme of Rumack is to bring forth as many derived merchandises of the popular Restolvic as possible in high volumes. However, it has besides been observed in the instance survey that there is a hold in the bringing of the merchandise as Rumack is sing troubles in keeping their agendas. Therefore one short-term alteration that the Author would propose is that Rumack Pharmaceuticals should concentrate on their chief aims and merchandises and hence should better their fabrication processes efficaciously and expeditiously to better their current bringing agendas instead of bringing forthing broad scope of merchandises. The author besides states that by using the capacity expeditiously, Rumack would be able to bring forth their best merchandise in higher volumes which will finally ensure in high return on investing.

The long-term alteration writer would propose for the fabrication scheme, is to put in highly proficient machines to get by with the current and future demands. Besides addition in the floor infinite

is another major demand at the minute for Rumack. As recommended before that Rumack should concentrate on their chief merchandises as this will assist in using their resources more efficaciously and expeditiously. Harmonizing to Hill and Hill ( 2009 ), a selling scheme plays a critical function in developing a well-structured fabrication scheme. Hence this can ensue in taking downing the set-up clip, cut down costs, unvarying procedures for different merchandises and high capacity. Cooke ( 2010 ) suggests some other schemes which can besides be implemented to Rumack Pharmaceuticals and these are:

• Provide maintain and better bing installations
• Focus on procedure betterments to increase the run length.
• Detect and extinguish mistakes and jobs
• Can concentrate on addition incapacity to diminish transitional period.
• Establish, proctor, and better procedure effectivity
• Provide and better care systems to back up the installations
• Analyze the impact of put in a new wadding line to alleviate the bottle cervix
• Minimal resources should be utilized

Mentions

1. Anderson, R. ( 2010 ), Engineering Strategy Module Notes Coventry University. Banishment: Coventry University
2. Cooke, G ( 2010 ) Management of Quality Module Notes Coventry University. Banishment: Coventry University
3. Hill T ( 1993 ) The kernel of Operations Management. Hemel Hempstead: Prentice-Hall
4. Hill, T. ( 1985 ) Manufacturing Strategy. Macmillan: Basingstoke
5. Hill, T. ( 1991 ) Production/Operations Management. 2nd and. Prentice-Hall: United kingdom
6. Hill, T. ( 1995 ) Manufacturing Strategy. 2nd and. Macmillan: Basingstoke
7. Hill, T. ( 2000 ) Manufacturing Scheme: Text and Cases. 2nd and. Palgrave: Basingstoke
8. Hill, A. and Hill, T ( 2009 ) Manufacturing Operations Strategy. 3rd and. Palgrave: London