PRINCIPLES OF LOGISTICS

MODULE: PRINCIPLES OF LOGISTICS

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1. Product Specification

Mars Bars

Mars chocolate bars were invented in 1932 in England, and today it’s available worldwide. Its main ingredients are chocolate, caramel, and nougat. Mars bars target children of age group 5 to 10 years across the upper, middle, and low-class households with quality product preference. Other products of mars bars include; Snickers, Twix, 3 Musketeers, Milky Way original, and Milky Way Midnight.

Rituals skincare

Rituals brand deals with home and body cosmetics inspired by natural ingredients and Asian culture. Rituals are designed for all individuals with high standards of personal care and that enjoy small pleasures of life. (Raymond, 2013). Its other produced products include; shower foams, body creams, bath oils, liquid hand soaps, detergents, fragrance sticks, and scented candles. Ritual skincare today is not only distributed in Europe but also in 13 other countries.

TomTom maps

Tomtom deals with developing and creating location technology and consumer electronics. It was established in 1991 in the Netherlands but today serves 35 other countries. Its primary target consumers are individuals aged 55 and above and mostly Canadian international travelers. Tomtom supplies other products such as maps technology and navigation software like Tomtom go navigation devices.

Isuzu crosswind

Isuzu crosswind is a seven-seater car produced by Isuzu Philippines corporations (IPC). Its leading target group is buyers with extended families, and the recent model targets stylish travelers. Crosswind has eight kinds, among them, being crosswind Sportivo X, XL MT, and XS MT. Isuzu’s vehicles are available in most commercial markets and globally.

2. Marketing mix

The marketing mix plays an essential role in the whole marketing process. It is the foundation of any business model, as it is centered on the prices, products, places & promotions. In the word of (Alexander & Kotler 2018) defined that it is a set of marketing tools which is used by the organization to purse in its marketing objectives for the target market.

3. Production life cycle

Every new product introduced in the market, whether monopoly or competitive, follows a cycle of four stages, namely, introduction, growth, maturity, and decline. These stages are inevitable and essential for a re-evaluation of product performance, pricing tactics, promotion strategies, and distribution chain (Brown Jeffery & Martin 2019).

Mars Bars

Mars chocolate bars are currently at the maturity stage, and this is due to its capability to withstand high competition from Cadbury’s Twisted chocolate bar. Although the marketing approach by Cadbury’s Twisted has successfully pulled consumers from Mars Bars, the products remain the top-selling candy consumed by the United States, with over 46 million consumers. In 2019 Mars generated an $ 18,000 million net sales. However, it has been reported that Since the 1990s, its demand has shrunk by 28 %. (Statista, 2020)

Rituals skincare

Ritual cosmetics was established in 2000, and today has more than 730 stores worldwide and continues to expand rapidly geographically. (Hoppenbrouwers, 2019). Ritual skincare is in the growth stage for being the fastest-growing European beauty brands

Its new mobility plan aims to digitize the supply chain and respond better to dynamic market changes. Ritual’s cosmetics’ profits graph has been n the rise since 2016 and generated $ 162.9 net sales in 2019. (Allan Dow, 2019).

Tom-tom maps

Tom toms’ maps have recently faced much competition from Google and HERE, which influenced its sale of fleet management business to Japan for $1 billion. (Marc, 2019).

The product is in the growth stage and has new development efforts that include 160 million investment in mapping and navigation technology and the shares growth of 6.5% in 2019 (Hesselink, 2019). In 2019 Tom Tom generated a revenue of about 700 million euros. (Statista, 2020)

Isuzu crosswind

Isuzu crosswind Sportivo has been in the market for 16 years since 2005 despite the presence of new sports utility cars good – looking multipurpose vehicles. (Sabellano, 2017).

Today the car is on the decline even as Isuzu tries to revive its modern designs and facing much competition from Mercedes- Benz B –Class, Honda odyssey, and Toyota Innova. (Lawrence, 2019)

4. Chain of supply and distribution

Mars Bars

The supply chain of Mars bars encompasses internal and external supplies of ingredients, equipment, packaging, and other vital components for the final products. Mars imports cocoa from Cote d’ Ivoire for over ten years. (Jeff Matis, 2018). The raw materials are imported and supplied locally by small scale farmers, after which on-farm processing and fermentation are done. The cocoa beans are then roasted before being channeled into an automated production procedure. The processing runs from mixing and tempering of liquid chocolate, cooling tunnels, coloring, and later to packaging, after which they are ready for distribution.

(Herald, 2018)

.The final product is delivered to wholesale distribution system who deliver to large scale and small scale retail outlets thereby reaching to the final consumer

Mars maintains a vendor’s assurance group which inspects and confirms the quality of their raw materials and has a globally networked community whose heads meet weekly to discuss the marketing and distribution structure of each segment. (Jerome, 2018).

Figure 1 supply chain

Isuzu crosswind

In Thailand, the Isuzu plant is located in the Gateway Industrial Belt in the province of Chachoengsao. The critical aspects of manufacturing undertaken include sheet material stampings and paint shops. Isuzu has over 211 suppliers who deliver to the warehouse where goods are checked and sorted. The assembly begins with the chassis to stamping section and lastly to paint shop. The finished product is then enrolled for sale, with 80% being locally consumed and the rest exported. The monthly demand for Isuzu crosswind is at 10,000 units in Thailand and the rest of the world.

Figure 2  organization structure

References

Books and Journals

• Hashimoto, T, Okada, K., and Oikawa, T.1986. Isuzu crosswind, Indonesia. New 9.8 L diesel engine with variable geometry turbocharger(No. 860460). SAE Technical Paper.
• Keeley, K. and Snyder, R., Romanczyk Jr, Hammerstone Jr., Buck, M and Cipolla, G.G., Mars Bars Inc., 2000. Method for processing fat and/or solids from cocoa beans mars bars. U.S. Patent 6,015,913.
• Nutter, B. 2008. Pinpointing TomTom navigation products and services: A forensic analysis. Digital Investigation, 5(1-2), pp.10-18.
• Yoo, B. Donthu and Lee, S. 2000. An examination of selected marketing mix elements and brand equity. Journal of the academy of marketing science, 28(2), pp.195-211.

Websites

• https://www.debenhams.com/beauty/skin-care/rituals [Accessed 25 May 2020]
• https://www.isuzu.co.jp/world/product/suv/panther.html [Accessed 25 May 2020]
• https://www.tomtom.com/en_us/drive/maps-services/maps/ [Accessed 25 May 2020]
• https://www.statista/ Mars/m&mfoodprocessing.com/articles/2008/016/ [Accessed 25 May 2020]