Fast MovinFastMovingConsumerConsumerGoodsGoods (FMCG)(FMCG) 1 Dissertation Report On Buying Behavior of FMCG Products Submitted To: Submitted By: Prof. R.P.Singh Vandana Chandra Director (ABS) MBA (Agri-Business) AMITY University AMITY UniversityLucknow Campus Lucknow Campus Under the supervision of: Mr. Ashish Chandra Faculty Guide (ABS) AMITY University Lucknow Campus Acknowledgement I consider my proud privilege to express deep sense of gratitude to Prof. R.P.Singh for his admirable and valuable guidance, keen interest, encouragement and constructive suggestions during the course of the project. I would also like to express my hearty gratitude to my faculty guides, Dr. Arun Bhadauria and Mr. Ashish Chandra …show more content…
Competition in FMCG sector is very high resulting in high pressure on margins. FMCG companies maintain intense distribution network. Companies spend a large portion of their budget on maintaining distribution networks. New entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands. Manufacturing can be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper imports. Also the market is more pressurized with presence of local players in rural areas and state brands. Overview of FMCG Sector FMCG is an acronym for Fast Moving Consumer Goods, which refer to things that we buy from local supermarkets on daily basis, the things that have high turnover & are relatively cheaper. FMCG in 2006 After 4 years of dull performance in both revenues & profits, FMCG sector has now, i.e., since 2005, gained the momentum, principally because of the smaller companies that have substantially improved their market shares at the cost of larger players, & in some cases, the regional players. If we carefully observe the FMCG index & BSE index, we would realize that the returns on money invested in FMCG index are much lower than the returns in benchmark index. The FMCG sector has under performed the benchmark BSE sensex in
There is a threat of bargaining power of buyers as there is a lot of competitors, which give the choice to convert from one chain to another. Moreover, chains are working strongly in the promotion, price, opening branches everywhere, developing the product, and cares regarding quality. It
The potential consumer target markets fall into two categories; the segments will be referred to as “Suburban Select” and “Young & Active”.
FMCGs are products that have a quick turnover, and relatively low cost. FMCG products are those that get replaced within a year and they constitute a major part of consumers‟ budget in many countries. The FMCG sector primarily operates on low margin and therefore success very much depends on the volume of sales (Sarangapani & Mamatha 2008).
Using Analytical Procedures as Substantive Tests By Frank A. Buckless and D. Scott Showalter, NC State University
The purpose of this study is to explore three companies by focusing on how the brands have been performing as well as what the customers and other stakeholders are saying about the different brands. This study will also summarize the strategic issues that the companies and those they are likely to experience in future.
In this report I will be comparing methods used by two different retailers on how they distribute two chosen products, of my choice, in two different retailing sectors. Seeing as the food and clothing sector both have very different styles of how they meet their product requirements, I will compare Tesco and JD; The products from these two companies itself that I’m going to compare is ‘Tesco Value Bread’ and Nike hoodies.
Griggs Sporting Goods, Inc. is sporting goods and outdoor equipment store chain that was established in 2011 and headquartered in Atlanta, GA. The company operates with six departments which include competitive sports, camping, hunting and fishing, apparel, footwear, and licensing. The franchise has 600 stores and three distribution centers throughout the United States. Also, the company operates in four geographical segments, which include North America, South America, China, and Eastern Europe. I currently work at the company as the lead logistics coordinator and one of my major accolades was increasing the organization return on assets during the 2014-2015 yearlong GSG development project.
On June 17, 2016, at approximately 11:02 a.m., Hub Representative Torres, met with Witness Caridad Herrera at the Republic Furniture Mfg. Inc. located at 2241 East 49th Street, Vernon, CA 90058. After a brief discussion with Ms. Herrera, she agreed to provide a recorded statement but requested a Spanish Translator because she would feel more comfortable in providing her statement. The interview was then translated from Spanish to English with the insureds Secretary, Ms. Amelia Lopez. The details of that interview are as follows:
• India's $250 billion retail business is the eighth largest in the world and has the potential to grow 7 per cent by 2011. [McKinsey Report] For a company already dominating the world markets, this is an un-passable opportunity.
In a growing ethnic food category, NRFC is facing the decision of launching or not Contadina fresh pizza. Study has shown that business viability is closely depending on brand penetration rate which is not accurately measured. Moreover, NRFC try to get the first mover advantage to face the expected concurrence of Kraft. Product is facing positioning problem, and if the launch failed, it may affect brand awareness and be harmful to its pasta line. NRFC should resolve positioning problem by finding the right price that increase sales reduce dependency to brand parent and ensure product
Suppliers in the industry seek buyers who can move a lot of merchandise in a short period of time. The threat of substitution is a big deal in this industry. Most retail stores carry the same types of products with little differentiation. This makes it difficult for companies in this industry to keep customers coming back. This places an emphasis on the need to build a good reputation with customers.
M&L Manufacturing makes various components for printers and copiers. The company supplies these items to a major manufacturer. The company also distributes these and similar items to office supply stores and computer stores as replacement parts for printers and desktop copiers. In all, the company manufactures about 20 different items to distribute. The two markets (the major manufacturer and the replacement market) require somewhat different handling. Product for the major manufacturer can be shipped in bulk. However, the products for the retail segment must be packaged individually which requires additional handling and expense. Instead of using forecasting for production planning the operations manager decides which
Mydin offers varieties of similar range products as their competitors where they are still able to undercut prices by reasonable percentages. Mydin’s pricing strategy is low price strategy where this strategy emphasizes on low price products as well as maintaining the quality of their products. It also focuses on reducing the cost from their operation to produce lower price products yet good quality. Besides that, Mydin used low price strategy to attract lower and medium income group in across Malaysia. Therefore, lower and medium income families are willing to purchase at lower price and high quality products at Mydin. Nevertheless, Mydin able to sustain its customers for long period of time and it will increase customer loyalty through their low price strategy. In addition, this low price strategy may attract small wholesalers and petty traders in getting cheaper supplies from Mydin. “It has also contributed to the business expansion and is reflected by an increase in number of wholesalers and petty traders who have registered as their frequent buyers (Armum, N.D)”. Furthermore, Mydin also emphasize in bulk buying and bulk selling to enjoy lower prices. Thus, Mydin selling in bulk enable to cut cost as well as sustains lower price for its wholesaler, bulk purchasers and end user. Therefore, Mydin was encouraging people to buy in bulk in order to save more. In addition, Mydin purchase raw materials in bulk in order to save more cost. “Mydin sources merchandise both locally and from other countries including Bangladesh, China, France, Hong Kong, India, Indonesia and some more” (Armum,
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years.
In future maintain 5% of stores as mini-supermarkets in her development target. 759 STORE did its best to conduct “lower margin with high turnover” policy. Through this 3 years effort on active developing direct import model, it was grateful that 759 STORE had not only built up supplies with food distributors and manufacturers of Japan and other countries, but also a smooth import operation with substantial procurement scale. To avoid any conflict on product price setting with traditional market players, the Group would take further step to increase the proportion of direct import and much fully exclude the supply of local suppliers who were difficult to have price negotiation with and did not allow 759 STORE to set product prices independently. Exploring new products in all angles and without limitation, our procurement team continued to source wide varieties of import product for Hong Kong residents’ enjoyment, where around 80% of them was food products and 20% of them was household and other products, hoping that our