Fmcg Sector of Pakistan

There are many suppliers in this industry due to the simplicity of the materials, basic food ingredients, needed to manufacture these products. Subsequently, supplier’s cost remains relatively low compared to other industries.

Considering the marketing segment, we choose the target market from small, medium and large farms. If products are sold to small farms, the sales revenues even can’t cover the cost,

FMCG sector has grown at an annual average of about 11 percent over last decade; food product is the leading segment accounting for 43 per cent of overall market. Personal care (22 percent) and fabric care (12 percent) comes next in terms of market share. Factors like growing awareness, easier access and changing lifestyles have been the key growth drivers of the sector.

issue of the industrial food complex carries a slew of unexpected complications. Just as enticing

Along with this, many farmers and fishermen are now required to properly package, each and every item being sold to the Food Processing/Manufacturing industry. This is due to the recent upsurge in technological advancements such as the vertical packaging machine. Due to this expectation, many businesses within the Agriculture and fisheries industry are faced to pay a heavy price for packaging, in order to satisfy their buyers. Businesses which fail to meet this expectation often face bankruptcy due to buyers not wanting

The market will be impacted by changing dynamics in the future. One of the key features that has impacted and will continue to do so is the shift towards online sales, this has resulted in brick & mortar store’s closing down due to lack of revenues and profits. CG is better placed to face this trend, as most of their sales (71%) are from wholesale with only 29% coming from direct to consumers, of which 19% is from online sales. They only have two stores and 4 country websites and have plans to open more stores and websites mainly in European countries.

We conducted some sensitivity analysis on Desert Valley’s budget to determine the expected impact of a 2% increase in the price of malt barley and wheat grain. This is especially important given the fact that customers are not willing to increase prices to compensate for the rising cost of these commodities. This puts pressure on Desert Valley to absorb these price shocks and still meet its other financial objectives.

Fuel prices and food prices most often go hand in hand. In today’s “agribusiness”, fuel is a major source of production and distribution, from farm machinery, delivering operating supplies and necessities, to the end point, transporting to the consumer. During periods of high fuel costs, many companies add a fuel surcharge to their customer’s bills, thereby affecting the cost of the product to their customer and the price of the product to the consumer. Much of the local food movement is driven by the abundance of fuel necessary to feed the population, and is therefore becoming more prevalent in the food system.

To have the ability to answer the research question, data from the above section of retailers was gathered. The purpose of the investigation is to examine IGA, Harris Farm, Mario’s Market, Woolworths and Coles selling the products which can be found in the market and gathering the price to each corresponding good.

With adverse weather conditions, rising population growth and inflation of food prices, Greene King may realise narrow profit margins and the company may have to compensate by increasing the price of its products

After we did the analysis on the potential of each product, we have identified Cake in Traditional segment and Cedar in Low End segment as cash cow products. This is because these products are at maturity stage, have high market share and market growth is slowing. As for Cid, Coat and Cure, which are in the High End, Performance and Size segment respectively, these products are categorized in the question mark segment due to high market growth and low market share. For Cake in cash cow segment, currently we are at $1800 on promotion cost and $2075 at sales cost. With the price of $26.88 per product and 2600 unit sales forecast, we are expecting $17,237 benefit. We are expecting a slight growth in this segment in the future; therefore, we will invest moderately in Cake and use the remaining funds to invest more in question mark segment in hopes to turn them into stars.

Service of 31 percent food loss at the retail and consumer levels, corresponded to approximately

Second-tier domestic producers (12.5 % market share in ECR, Case study - exhibit 3), medium-size competitors and regional producers, category to which MMBC belongs. These companies try to follow the major players in their product offering and marketing strategies, but fall short on the financial and marketing capabilities. They constitute MMBC’s main competition.

However, the security of being a present day processed food leader is challenged by changes within consumer demands, unpredictable variables processed food market (such as weather), technological changes within the factory and public environment has changed the food manufacturing game.

In early 1980’s RMC started realizing losses. The prime factors of this loss are lack of advertisement, brand recognition; lack of knowledge about consumer behaviour; lower yield of 2.8 pound per sq. feet as compared to industry average of 3.1; the proportion of production for each style varied and were not in accordance with demand; lack of consistent presence in geographical areas.