Fast Moving Consumer Goods Companies Research Articles

The Implication of Multinational Corporations in Poverty Eradication in Cameroon

This paper explores business strategies and policies put in place by multinational corporations to alleviate poverty in Africa with specific examples from Cameroon. The world's population is rapidly increasing and the rich people are getting richer, whereas the poor people are becoming even more marginalized. During the era of economic liberalization the belief was that the opening up of economies to multinational corporations could lead to economic growth and, subsequently, economic development. The activities of multinational corporations have witnessed a tremendous boom since the advent of the twenty first century, that is characterized with advances in information communication technology, and the flow of capital have been the main proxy for MNC activity. MNCs are mainly motivated by opportunities that increase their profits, and the most important factors for MNCs are market size and access to resources. Nevertheless, as markets are getting saturated and MNCs are looking for new opportunities, innovative business strategies have been developed to provide dividends to their shareholders while making sure the stakeholders and communities in which they operate also benefit. This paper explores some business models that MNCs have used to make their products available, affordable and accepted in poor markets that are mostly found in Africa on the one hand and corporate social responsibility initiatives implemented by MNCs to alleviate poverty in the continent on the other. The paper concludes that though the principal goal of MNCs is profit maximization, corporations are making an effort to see that the poor benefit from the activities of these giant companies. To get to this conclusion the paper relied on both primary sources and the exploitation of the already existing literature in books and journals. Given that the sector of activities of MNCs is vast, the paper laid emphasis on fast moving consumer goods companies (FMCGs) in Cameroon.

The application of outsourcing decision-making methods in a logistics context in South Africa

Background: Companies have often relinquished the control of important business functions to outside suppliers for the sake of short-term savings and because of the lack of use of proper decision-making methods within the business.Objectives: This article identified three methods of decision-making and applied it to a logistics outsourcing problem. The logistics outsourcing problem consisted of a make-or-buy decision as well as a supplier selection process. The purpose of the study was to determine the most suitable method in the case of logistics outsourcing.Method: The decision-making methods were applied to a South African case study within the fast moving consumer goods (FMCG) industry. The logistics functions considered in the case study included secondary distribution and warehousing of finished goods. Each method considered the same evaluation criteria and the results were analysed and compared.Results: Each method produced different results to the logistics outsourcing problem. The method developed by Platts, Probert and Canez (2000) suggested that the logistics functions be insourced. The decision tree method suggested outsourcing both functions, with a unit rate cost model. The results from the linear programming (LP) method indicated that the secondary distribution function should be insourced and the warehousing function outsourced, with a fixed and variable cost model pending further analysis of the demand trends.Conclusion: The study provides empirical evidence that proven outsourcing decision-making methods, such as the method developed by Platts et al. (2000), the LP method and the decision tree method traditionally applied to a manufacturing outsourcing decision problem, can be adapted and applied to a logistics outsourcing decision problem of a South African FMCG company.

Impact of Financial Leverage on Profitability of Fast Moving Consumer Goods Companies Listed on BSE

The paper focuses to investigate the effect of leverage on profitability of companies in FMCG Sector in India. For the purpose of the study of the relationship between leverage(independent variable) is defined in terms of Financial Leverage and Profitability (dependent variable) is defined in terms of earning per share, return on net worth (return on equity), and net profit margin. The data base is fast moving consumer goods companies listed on S&P BSE FMCG Index. The research techniques include Karl Pearson Correlation and T-Test. The data of five year period from F.Y 2009-10 to 2013-14 is taken for the purpose of the study. It is expected that financial leverage exerts its influence over profitability margin and investment. The results indicate that three among seven companies under study have witnessed negative correlation between EPS and degree of financial leverage, while four companies have faced decline in return on net worth as aftermath of leverage adopted by them. It is apparent that presence of debt has not brought any positive change in net profit margins which could be due to the fact that higher interest payments cause decline in net profits.

Social sustainability practices in the supply chain of Indian manufacturing industries

Though the sustainability addresses predominantly on environmental concerns for many decades, the focus on social sustainability in the supply chain was explored less. In developing countries, social sustainability is gaining momentum recently, in the wake of increasing social issues flagged by social organisations. This research on social sustainability unearths the social sustainability practices adopted by two different manufacturing companies, from two different domains that include automobile and fast moving consumer goods (FMCG) industry. In this research, comparative case study methodology is employed, that includes identification of social dimensions which are specific to manufacturing industries, and comparative analysis of various practices adopted by two different manufacturing companies. Major findings imply similarities and differences between companies that can lead to different approaches to sustainability. There were significant differences in the sustainable practices between FMCG and Automobile companies, given their different dynamics. However, all the practices lead to social sustainability in the Indian continent. This research helps the supply chain managers and decision makers who are involved in operations to understand different practices and their impact on different industries, which will act as a guiding tool for decision making.

Creativity as Mediator for Intrinsic Motivation and Sales Performance

Substantial theoretical and empirical literature indicates inconsistent performance implications of intrinsic motivation, suggesting the possibility of some explanatory mechanisms. However, little is known about the factors that might explain intrinsic motivation and sales force performance relation, particularly in highly competitive and demanding fast moving consumer goods (FMCG) marketplace requiring new and useful solutions. Creativity, being a critical yet underutilized weapon in sales force arsenal, has the potential to assume the role. Therefore, this study aims at developing and testing a theory-driven framework in linking intrinsic motivation to sales performance while using sales force creative performance as partial mediator. By employing structural equation modeling, the empirical validity of the proposed mediating model is evaluated against plausible moderating model in a sample of 688 frontline field salespersons of FMCG companies in Lahore (Pakistan). Findings indicated that sales force creative performance is nurtured by intrinsic motivation that, in turn, promotes sales performance. Practical implications of findings for sales force management and suggestions for future research are presented, too.

Critical success factors for total productive manufacturing (TPM) deployment at Egyptian FMCG companies

Purpose – In this paper, the authors study the critical success factors for deploying total productive manufacturing (TPM) programs in the Egyptian fast moving consumer goods (FMCG) companies. The paper aims to discuss these issues. Design/methodology/approach – The authors study five Egyptian FMCG companies that have deployed TPM. Data were collected through interviewing group of middle managers in each company in addition to the TPM manager. Site visits were conducted for the purpose of data verification. Findings – The research identified nine factors affecting the success of TPM deployment. The importance of each of those factors depends on the stage of the TPM deployment maturity at the company. Originality/value – The main practical implication of this finding is to guide companies undergoing a deployment of TPM, particularly in developing countries, to focus on the factors that are most pertaining to the level of their deployment maturity.

COST EFFECTIVE AND EFFICIENT INDUSTRIAL TANK CLEANING PROCESS

The tank cleaning process is one of the major requirements in many industries such as in Pharmaceutical Industries, Fast Moving Consumer Goods Companies (FMCG) and in Paint Industries. The tank cleaning in many small scale industries is still manual and lengthy process. In industries sometimes these tanks are placed in an area where humans cannot go and work, so to avoid this problem we thought of fully automated process of tank cleaning for that we have chosen Programmable Logic Controller (PLC).The PLC is the heart of the system Proposed system provides cost effective and efficient alternate solution to existing system. This system reduces the bulkiness and it is easy to understand (user friendly).It does not require difficult or complex algorithm and coding is also not lengthy. This system stores the water used for the process of tank cleaning instead of throwing away. From conductivity sensor we will come to know the cleanliness of the tank so the ultimate results obtained are reliable and accurate.

Simulated test marketing in emerging markets: the need to re-think

Purpose – The world's leading manufacturers of fast moving consumer goods (FMCGs) generate up to 50 per cent of their revenues in emerging markets. Simulated test marketing (STM) is a common practice deployed by these companies to forecast new product sales. Emerging markets represent only a small portion of the global STM business. The purpose of this paper is to incorporate and further explore some key trends anticipated in the development of the future generation of STM models by drawing specific attention to the issues currently experienced in one of the emerging markets, Russia. Design/methodology/approach – A quantitative survey of Russian client-side marketing experts provides strong evidence for the need to further improve and modify STM methods, addressing new challenges in rapidly developing markets of Eastern Europe, the Middle East, Asia, Latin America and Africa. Findings – Marketers in Russia believe many STM approaches poorly reflect the nuances and characteristics of their markets. This has implications for global players targeting emerging markets based on assumptions formed for STM in their home markets. Research limitations/implications – This is a preliminary study which warrants following up. Its basis in Russia arguably has implications for other emerging markets, but whether these findings are evident in other markets needs to be tested. Practical implications – FMCG companies in Russia would appreciate a flexible, proactive, “client-oriented” approach as opposed to conservative, “model-centered” services based on “global” execution standards. This would lead to the co-creation of STM models that could achieve more accurate forecasts in emerging markets and achieve a greater level of confidence in the use of STM among multinational FMCG companies. Originality/value – The research undertaken leads to a general conclusion that although traditional STM models have attained relatively high awareness among FMCGs in Russia, their use is still limited as there is a perception of this being a research instrument that would need adaptation to the Russian market. Instead, simpler, cheaper and less time consuming alternatives are often employed, such as expert assessments, basic quantitative or qualitative tests. Although the most commonly acknowledged advantages of STM are well understood in Russia, there are some key barriers to its widespread adoption: poor quality or insufficient market data, lack of local market experience and validations, lower forecast accuracy as compared to “western” markets, low flexibility in terms of design and cost.

Indian Rural Market: An Impulse to FMCG Sector

The Fast Moving Consumer Goods (FMCG) sector is a foundation stone of the growing Indian economy. This sector strikes every foeet of human iife. The FMCG producers now realize that there is a lot of prospect for them to enter into the nJral market. The rising incomes and growing lifestyle is a significant at/raction for this sector, There are more than middle income households in the nlTal areas as compare to the urban. Thus the rural marketing has been growing progressively over the years and is now bigger than the urban market. Globally, the FMCG sector has been successful in selling products to the lower and middle income groups in India. More than 70% of sales are made to middle class households today and over 50% of the middle class residing in rural India The FA-leGsector is energized ahout a rapidly increasing rural population whose incomes are intensifying and which is willing to spend on goods designed to improve their lifestyles. Also with a near saturation and cut throat competition in urban India, many manufacturers and marketers of this sector are driven to formulate new strategies for targeting the roral consumers. Bul lhe roral penetration rales are low. This presents a tremendous opportunity for manufacturers of branded products who can convert prospective consumers into consumers to buy their products. ComfXmies including lv/ulli National Companies and regional players started developing marketing strategies to aUraetthis unJouchedmarket. While formulating the strategies, the marketers need to take care of the rural consumers differently from urban Rural India is a powerhouse propelling the economy's growth. Home to two-thirds of the country's one billion consumers, it is the zone where almost half of the national income is generated. Marketersare focussing on the Indian hinterlands to achieve their revenue targets by increasing their presence into the rural markets. Marketers are looking the aspiring rural and semi-urban India to yoke growth opportunities. Cable and satellite penetrationhas helped in a big way to access hard.to-reach ruralareas. Moreover, advertising budgets for rural markets do nat demand much of the liquidity. Marketing of products and services through simple ways like village melas (fairs), nukkad natii«Js (road theatre), boat branding, mobile vans and wall paintings prove to be very effective and that too at minimal costs. Both FMCG companies and automobile companies are the biggest advertisers in semi-urban and rural markels. Mast of the FMCG finns follow the strategy of cam ing up with small size packs for the people residing in remote areas. Euromonitor International'ssurvey has found that 68 per cent of personal care products were sold in ruralIndia in FY 12 as against 31 per cent in cities. Thus, markets in ruraland semi.urban India are on the edge to be the future growth drivers due to higher disposable incomes, rising desires of people to own quality products and improved infrastructuresupportextended by the Government for the development of these areas. The Indian Fast Moving Consumer Goods (FMCG) industry began to shape during the last fifty odd years. The FMCG sector is a foundation stone of the Indian economy. This se<:tortouches every aspect of human life. Indian FMCG market can be divided between the organized sector and the unorganized sector. Unlike the US market for FMCG which is dominated by global players, India's FMCG market remains highly fragmented with roughly half of the market going to unbranded, unpackaged and home made products. This presents a tremendous opportunity for manufacturers and marketers of branded products who can convert consumers to buy their products. Around the Globe, the FMCG sector has been successful in selling products to the lower and middle income groups, and the same scenario is true for Indian markets. Around more than 70% of sales are made to middle class households today and out of which more than 50% is in rural India. The sector is excited about a rapidly increasing ruralpopulation whose incomes are rising and which is willing to spend on goods designed to improve lifestyle. Also with a near saturationand cut throatcompetition in urban India, many manufacturersof FMCGs are driven to formulate new strategies for targeting the rural consumer. MART, the specialisl rural marketing and rural development consultancy, has found that 53 per cent of FMCG sales and 59 per cent of

Being Authoritarian down the Road: Authoritarian Decision-Making and Implementation

This paper focuses on disentangling the relationship between authoritarian decision-making and implementation, and how each relates to work unit outcomes. Survey data from 376 entry- level employees and 24 executives of 114 work units in a Chinese Fast Moving Consumer Goods company revealed three important findings. First, authoritarian decision making and implementation was shown to be two distinct components of authoritarian leadership. Second, the negative relationship between authoritarian decision making and work unit decision quality can be mitigated by authoritarian decision implementation, particularly when the leaders are viewed as competent. Third, compared to leaders who are evaluated highly on authoritarian decision implementation, those who are rated low build a stronger relationship between their authoritarian decision making and their work units’ citizenship behavior and voluntary turnover, which was mediated by work unit decision quality. The theoretical and practical implications of these findings are discussed.

Behaviour change for better health: nutrition, hygiene and sustainability

As the global population grows there is a clear challenge to address the needs of consumers, without depleting natural resources and whilst helping to improve nutrition and hygiene to reduce the growth of noncommunicable diseases. For fast-moving consumer goods companies, like Unilever, this challenge provides a clear opportunity to reshape its business to a model that decouples growth from a negative impact on natural resources and health. However, this change in the business model also requires a change in consumer behaviour. In acknowledgement of this challenge Unilever organised a symposium entitled ‘Behaviour Change for Better Health: Nutrition, Hygiene and Sustainability’. The intention was to discuss how consumers can be motivated to live a more healthy and sustainable lifestlye in today’s environment. This article summarises the main conclusions of the presentations given at the symposium. Three main topics were discussed. In the first session, key experts discussed how demographic changes – particularly in developing and emerging countries – imply the need for consumer behaviour change. The second session focused on the use of behaviour change theory to design, implement and evaluate interventions, and the potential role of (new or reformulated) products as agents of change. In the final session, key issues were discussed regarding the use of collaborations to increase the impact and reach, and to decrease the costs, of interventions. The symposium highlighted a number of key scientific challenges for Unilever and other parties that have set nutrition, hygiene and sustainability as key priorities. The key challenges include: adapting behaviour change approaches to cultures in developing and emerging economies; designing evidence-based behaviour change interventions, in which products can play a key role as agents of change; and scaling up behaviour change activities in cost-effective ways, which requires a new mindset involving public–private partnerships.

Harnessing Supply Chain Efficiency Through Information Linkages

The Indian retail industry majorly constitutes of small retailers, comprising of approximately 12 million small shopkeepers and increased competition has made companies understand the significance of this unorganized small retail sector. Most companies feel that coordinating their downstream supply chains is critical for long term growth and sustainability. The paper examines the supply chain coordination amongst retailers, distributors, logistics providers, customers, and major Fast Moving Consumer Goods (FMCG) multi-national companies in India. The findings confirm that supply chain integration, information sharing, and supply chain design are being given proper attention by FMCG companies. They appreciate the strategic value of information sharing for establishing collaborations with the small retailers for effective performance of supply chains. Even in the fragmented, ill-defined, unorganized, and disjointed small retail sector in India, information sharing between supply chain partners is given precedence. Lack of technological infrastructure does not deter MNCs from establishing information linkages with small retailers and harnessing it for supply chain efficiency.

Enabling supply chain segmentation through demand profiling

PurposeWhilst there are a plethora of theoretical ideas regarding a segmented approach to supply chain strategy, there is paucity of empirical data. This paper aims to present the results of a field‐based case study in a fast moving consumer goods company (FMCGCo) that sought to identify the most relevant basis for supply chain segmentation.Design/methodology/approachResearch carried out on a single instrumental case, FMCGCo. A four‐stage research design was employed to develop and test an approach to developing a segmented supply chain strategy for FMCGCo supply chain Western Europe.FindingsThe study identified demand profiling at an item level (using volume and variability classifiers) as the primary driver of supply chain strategy. It also developed a novel profiling tool. This not only segmented demand but identified through the introduction of the concept of filters a method for turning the results of the demand profiling analysis into a segmented supply chain strategy.Research limitations/implicationsThe results presented are based on a single instrumental case. It is the approach that is transferable to other supply chain contexts not the specific solution per se.Practical implicationsThe paper presents a practical and pragmatic approach for companies to develop a segmented supply chain strategy based on demand profiling.Originality/valueThe introduction of a new tool as a practical and relatively quick means of developing a segmented supply chain strategy, that considers both market and product characteristics.

A quantitative model for the introduction of RFId in the fast moving consumer goods supply chain

PurposeThe purpose of this paper is to describe an analytical model to assess the costs and benefits of radio frequency identification (RFId) applications in the fast moving consumer goods (FMCG) supply chain.Design/methodology/approachThe paper is based on an in‐depth literature review and a classification of the main contributions regarding the assessment of RFId applications. The impact of RFId technology on supply chain processes has been modelled using an activity‐based approach. An extensive, six‐month discussion and refinement process with the logistics and supply chain managers of 30 FMCG companies is conducted to validate the model and to collect the required inputs.FindingsPallet‐ and case‐level taggings have been explored. The former scenario shows limited benefits, whereas the actual potential of RFId becomes clear in the latter. The profitability of these projects is significantly affected by the costs of RFId tags and by the characteristics of the base‐line supply chain in terms of efficiency, quality requirements and, of course, product features. The model provides a clear assessment of how and when a positive return on investment can be achieved, even with today's technology (in terms of costs and performances).Originality/valueThis is one of the first attempts to provide a comprehensive analysis of the costs and benefits of an RFId application, taking into account all the major factors involved. The model can be a valuable support to manufacturers and retailers in evaluating their investments.

International advertising campaigns in fast-moving consumer goods companies originating from a SMOPEC country

A particularly interesting area of research concerns how international fast-moving consumer goods (FMCG) companies from small and open economies that operate in turbulent markets plan successful advertising campaigns for international markets. The objective of this research was to determine how they are planned and what factors affect this planning. The theoretical part of the study reviews literature related to the internationalization of firms, international advertising campaigns, and standardization versus adaptation of international advertising. Based on the literature, a theoretical framework and propositions regarding the international campaign planning process for FMCG companies were developed. The empirical part uses the multiple-case study method to examine four FMCG companies that were founded in Finland. The empirical results show that five stages are especially important in the international campaign planning of FMCG companies. Moreover, the companies need to consider a number of factors when deciding on international adverting campaigns. The study presents a number of theoretical contributions and managerial implications. A novel finding relates to the importance of understanding the impact of the internationalization/globalization phase of the company. During internationalization often within the home continent, companies increasingly adapt advertising campaigns to different countries, whereas globalization to other continents calls for increased standardization across countries. Another interesting finding was that FMCG companies from small and open-economy (SMOPEC) countries often use innovative non-traditional campaigns to overcome the resource limitations.

Brand teams and the brand management structure in pharmaceutical and other fast-moving consumer goods companies

In the modern business environment, team building and the development of relationships with the various interfaces for the benefit of their brands are very important activities for brand managers. This study examines an extending organizational phenomenon, namely the development of teams for effective brand management in various local markets. In particular,it investigates the way brand managers in the fast-moving consumer goods and pharmaceutical industries comprehend team roles and activities by analysing the allocation of their working time and the perceived contact and significance of relationships with their interfaces. Based on the product management literature, the structure of the local brand's team was empirically examined using data collected from a sample of 187 product managers working for 58 companies in different sectors in Greece. The results show that four subgroups were developed in the various sectors,but with different members.

Brand teams and the brand management structure in pharmaceutical and other fast-moving consumer goods companies

In the modern business environment, team building and the development of relationships with the various interfaces for the benefit of their brands are very important activities for brand managers. This study examines an extending organizational phenomenon, namely the development of teams for effective brand management in various local markets. In particular,it investigates the way brand managers in the fast-moving consumer goods and pharmaceutical industries comprehend team roles and activities by analysing the allocation of their working time and the perceived contact and significance of relationships with their interfaces. Based on the product management literature, the structure of the local brand's team was empirically examined using data collected from a sample of 187 product managers working for 58 companies in different sectors in Greece. The results show that four subgroups were developed in the various sectors,but with different members.

Category management: A vehicle for integration between sales and marketing

This paper highlights the need for integration between the sales and marketing departments of fast moving consumer goods companies. Based on existing studies of cross-functional relationships in organisations it develops the case for integration, and for mechanisms to generate integration. The central thesis of the paper is that a category management approach offers a major mechanism for achieving integration at the sales-marketing interface.

Total quality management in leading fast-moving consumer goods companies

Describes the origins and development of TQM programmes in seven fast-moving consumer goods organizations in the UK and reports on the results of a comparative study identifying methods and techniques used, and the impact of change on performance; eschews the survey approach and relies on single site interviews of people at all levels. Finds in each case that the motivation for embarking on TQM was the arrival of a single individual in a particular post and that, while all had used consultants, their approach was company specific. Presents the results in qualitative terms spiced with verbatim comments and identifies impressive gains both in productivity and morale, as well as quality.