Expansion of Company's marketplace into new cities.
Lack of clarity about the response from the new market we cannot have an accurate estimate about the market demand for 3 months together. So, we'll place a rough estimate order in the first month and depending upon the response, we'll place our orders for the second and third month. As mentioned in the case report, even during the off-season from May- July, the Market Demand was 1.95 lacs PM. Since we're ordering quarterly, we can at the max only have 2.5 lac copies for a duration of 3 months which clearly points to the fact that we're bound to fail in meeting the market demand. So, to dynamically meet the market demand, our order and supply cycle will shift to monthly basis. Supply & Distribution As we saw in the case report, the market demand during May'15-July'15(off-season period) was 3.5 lacs. Therefore, on avg it was 1.75 lacs PM. We can estimate that during the peak season, the market demand will be 2-2.5 lacs PM. Now, our ordering procedure will be a 3 month cycle wherein, during the first month, we'll also ensure that there are at least 25 thousand copies as buffer in the warehouse. We'll ensure that even during the second month, our order will be the same but what we'll Management of Exceed/Decreed Case-1 if the market demand is very low. Say we are left with 50k copies from the first month of our three month cycle and we have already placed the order for the third month (since it will be pre placed) we will dispatch those 50k copies first and then the remaining which we get for that month..now seeing that the market demand is low and stock has piled up i'll drastically decrease the no of copies to be ordered for our three month cycle. Case-2 if the market demand is high Constraints and concerns for new cities In new cities the distributor retailer network might be week so we will ensure that the new distributor gets the copies on a priority basis to cover up any gaps due to inexperience To get experienced established distributors we will go for a low profit startegy wherein our selling price will cover only are creation and cost price..so that the retailers get to make more profit and they promote it. During off season we will go for our minimum limit during the first month and depending on the response vary the placement from second Thank you Team Blue Bottle