Fast Moving Consumer Goods Firms Research Articles

Brand Equity in Pakistan’s FMCG Sector: The Influence of Employee Engagement, Brand Orientation, CSR, and Organizational Culture

This study explores the relationships between employee engagement, brand orientation, and corporate social responsibility (CSR) initiatives in enhancing brand equity in Pakistan's fast-moving consumer goods (FMCG) sector, using organizational culture as a moderator. Grounded in the Resource-Based View (RBV), this research highlights how internal organizational resources can provide sustainable competitive advantages through brand equity. A structured questionnaire was distributed to employees within FMCG firms, and data was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results demonstrate that employee engagement, brand orientation, and CSR initiatives positively influence brand equity. Additionally, organizational culture significantly moderates the relationship between brand orientation and brand equity, while its moderating impact on employee engagement and CSR initiatives is less pronounced. The study offers valuable theoretical contributions by integrating internal factors within the RBV framework and practical insights for FMCG managers aiming to enhance brand equity. Limitations include the cross-sectional nature of the study and sector-specific focus. Future research should consider longitudinal approaches and explore additional moderating variables across different markets.

Investigating the Adoption of Green Logistics Practices on Operational Sustainability in Fast-Moving Customer Goods in Lagos State, Nigeria

Statement of Problem: There is a growing debate on sustainability challenges among fast-moving consumer goods firms (FMCG). FMCG firms value efficiency and sustainability. Research shows that FMCG firms are unsustainable owing to inadequate green logistics practices. Many studies focused on non-FMCG companies and industrialised countries, not emerging ones. Methodology: The green logistics and operational sustainability of chosen FMCG firms in Lagos State, Nigeria, were examined. The study was survey-based. The study included 13,782 managers from eight publicly listed FMCG businesses in Lagos State, Nigeria. The Taro Yamane formula determined the 519 sample size. Basic random sampling was utilised. The questionnaire was standardised and validated. Constructs' Cronbach's alpha reliability coefficients ranged from 0.78 to 0.94. The response rate was 96.7%. The data were examined using descriptive and inferential statistics, including multiple and hierarchical regression. Findings: The findings revealed that green logistics practices had significant effect on the operational sustainability of selected FMCG firms in Lagos State, Nigeria (Adj.R2 = 0.02, F(5, 496) = 3.31, p < 0.05). The study concluded that green logistics practices promote operational sustainability of selected FMCG firms in Lagos State, Nigeria. Recommendations and Contribution to Knowledge: FMCG enterprises in Lagos State, Nigeria can integrate green logistics techniques into their sustainability plan to improve long-term sustainability. The research suggests that green logistics techniques may considerably enhance operational sustainability, making them essential to a firm's sustainability strategies.

Developing artificial intelligence enabled Marketing 4.0 framework: an Industry 4.0 perspective

PurposeThe paper aims to analyze the potential of artificial intelligence (AI) in enhancing marketing capabilities for Indian fast-moving consumer goods (FMCG) firms, with appropriate emphasis on dynamic capabilities (DC). By integrating AI into their operations, companies can enhance diverse marketing practices, leading to improved efficiency and effectiveness. In addition, the study offers valuable insights and guidance for effectively implementing AI in marketing strategies.Design/methodology/approachIn-depth interviews of 26 seasoned professionals from various positions in the Indian FMCG sector were conducted for the study. A systematic approach of coding that includes open, axial and selective coding was made to recognize the themes that represent AI-enabled marketing practices. This approach ensured that the themes were precisely identified and comprehensively analyzed. Interviews followed by a rigorous coding process provide valuable insights into the practical implementation of AI-enabled marketing practices for the Indian FMCG industry.FindingsThe study’s results underscore the importance of AI in enhancing marketing practices for FMCG firms, particularly in four critical areas: personalization, consumer engagement, marketing automation and strategic goals. By adopting AI in these areas, Indian FMCG firms can significantly enhance their marketing capabilities, increasing efficiency, effectiveness and gaining a competitive advantage.Research limitations/implicationsThe study uses qualitative data analysis to explain how DC through AI technologies can enhance digital marketing practices for Indian FMCG organizations. Furthermore, the study provides valuable insights into how AI technologies can improve marketing capabilities and emphasizes the importance of DC. The study also proposes a framework for AI-enabled Marketing 4.0 that can guide FMCG firms seeking to leverage AI technologies to enhance their marketing practices.Originality/valueThis study outlines the potential for enhancing marketing practices by adapting AI in the Marketing 4.0 environment for Indian FMCG companies, highlighting the importance of DC in achieving this goal.

An Empirical Investigation into Financial Distress in the FMCG Sector in India: A Comparative Analysis Using Altman Z-Score and Descriptive Statistics

India's Fast Moving Consumer Goods (FMCG) industry is essential to the country's economic development because it generates a large number of jobs, consumer spending, and generic growth in industrial production. This study leverages the renowned Altman Z-Score model, in conjunction with descriptive statistics, to assess the financial distress of the top five FMCG firms in India. The results from the study clearly show that all the top five companies in the FMCG sector were in the safe zone or in a too healthy zone. The minimum Z-score value among the selected top five companies was 3.36, which shows the strong financial performance of the FMCG sector. The Z-score value of ITC is significant, as the value surges from 4.35 in 2014 to 6.04 in 2023 with steady growth. It implies a healthy financial environment in ITC. In contrast, the Z-score value of Britannia had significantly dropped from the values of 6.1 in 2017 to 3.77 in 2023. Between 2020-2021, almost all the companies saw a sharp downtrend in the Z-score values, which was resulted from the impact of the Covid-19 pandemic (Prasad, V, 2022). It reflects the global economic slowdown due to the Covid-19 pandemic, which also hit the FMCG sector. Britannia and ITC experienced high volatility in the Z-score values for the time period of the last ten years. The highest range was observed in ITC (2.38), followed by Britannia (2.37). The lowest range was observed in Nestle India (0.70). The financial performance of the top five companies in the FMCG sector is in a good position. It clearly shows that there is huge potential for the growth of the FMCG sector and that it will further increase the valuation of companies in the FMCG sector and benefit the shareholders, promoters, and investors.

Zero-Plastic Waste: Examining Product Packaging Circularity to Mitigate Environmental Pollution

The problem of plastics pollution has become one of the most urgent issues in the world now especially plastic packaging materials. This study assessed how to implement product packaging circularity for its resolution. This study was aimed at determining appropriate package circularity sustainability practices for the fast-moving consumer goods (FMCG) sector in Ghana. The study adopted purposive sampling procedure to select 14 out of the numerous fast-moving consumer goods companies in the Greater Accra Region of Ghana. The sampled size of the study was 217 participants.It was a quantitative research approach that utilized a survey instrument (Google form) for collection of data that were analysed using descriptive statistics. The results of this study provided useful directions for FMCG firms and policy makers in Ghana and globally as the base for the initiatives of zero plastic waste and contribution towards the global fight against pollution and promotion of sustainable ESG strategy within FMCG industry.

An optimization model for the downstream supply chain network, considering consolidated warehouses and the selection of transportation mode

PurposeThe supply chain (SC) of the fast-moving consumer goods (FMCG) sector in India witnessed a significant change soon after introducing the Goods and Services Tax (GST). With the initiation of this tax, companies started moving from individual state-wise warehouses to consolidation warehouses model to save costs. This paper proposes a model that frames a mathematical formulation to optimize the distribution network in the downstream SC by considering the complexities of multi-product lines, multi-transport modes and consolidated warehouses.Design/methodology/approachThe model is designed as mixed-integer linear programming (MILP), and an algorithm is developed that works on the feedback loop mechanism. It optimizes the transportation and warehouses rental costs simultaneously with impact analysis.FindingsTotal cost is primarily influenced by the critical factor transportation price rather than the warehouse rent. The choice of warehouses at prime locations was a trade-off between a lower distribution cost and higher rent tariffs.Research limitations/implicationsThe study enables FMCG firms to plan their downstream SC efficiently and to be in line with the recent trend of consolidation of warehouses. The study will help SC managers solve complexities such as multi-product categories, truck selection and consolidation warehouse selection problems and find the optimum value for each.Originality/valueThe issues addressed in the proposed work are transporting products with different sizes and weights, selecting consolidated warehouses, selecting suitable vehicles for transportation and optimizing distance in the distribution network by considering consolidated warehouses.

Bolstering the role of human resource information system on employees’ behavioural outcomes of selected manufacturing firms in Nigeria

The efficient use of an organisation's valuable human resources is crucial to its success. Organizations are embracing HRIS more and more to ensure the efficient utilization of their human resources (a relatively new technology in HRM). However, enterprises, especially manufacturing firms, are lagging in reaping the benefits of modern technology due to a slew of challenges. To close the stated gaps, the current study investigated the role of human resource information system on employees' behavioural outcomes in selected manufacturing firms in Nigeria. The diffusion of innovation theory was used to explain the inevitability of new technology in HRM. The target population comprised managers and supervisors of Nigeria's selected Fast Moving Consumer Goods firms (FMCGs). Specifically, the purposive sampling technique was adopted to select the participants for this study. Copies of the questionnaire was used to collect data from a diverse cross-section of the managers and supervisors. The information collected was analyzed using structural equation modeling. The findings revealed that manpower planning information, performance appraisal information and succession planning information are predictors of employees' behavioural outcomes. It was concluded that management apprehension, employee privacy concerns, internal organisational opposition, and conversion costs are the most significant barriers to effective HRIS implementation. Finally, several quantifiable approaches to improve new technology in HRM were proffered.

A Multi-Criteria Based Stock Selection Framework in Emerging Market

The present study aims to compare the stock performances of the Fast Moving Consumer Goods (FMCG) and Consumer Durables (CD) firms at the Bombay Stock Exchange (BSE), India. It is evident from the extant literature that investment in the stock market depends on two broad objectives such as maximization of return while minimization of risk. Besides, investment decisions are also influenced by the behavioral nature of the investors. To this end, the current work considers the earning prospect (average market return, return on net worth, earning per share, and yield), market-centric risk (beta), market perception (price to book value, shares traded), momentum (turnover) and benchmarked performance (alpha) to set the criteria for comparison. The study period considers seven consecutive financial years to discern the performance. For the comparative analysis, a combined multi-criteria decision-making (MCDM) framework of Logarithmic Percentage Change-driven Objective Weighting (LOPCOW) (used to determine criteria weights) and Evaluation Based on Distance from Average Solution (EDAS) (for ranking) methods has been utilized. Borda Count Method (BC), Copeland Method, and Simple Additive Weighting (SAW) have been used to aggregate the year-wise rankings. The calculated weights show consistency to the modern portfolio theory as average return, beta, and return on net worth obtain higher weightage than others. It is observed that there are variations in the year-wise comparative ranking, while on aggregation, FMCG firms dominate the top positions. The analysis reveals that Avanti Feeds Ltd., Hindustan Unilever Ltd., Procter & Gamble Hygiene & Health Care Ltd., Britannia Industries Ltd., and Nestle India Ltd. are the top five performers, while Godfrey Phillips India Ltd., E I D-Parry (India) Ltd., United Breweries Ltd., Rajesh Exports Ltd., and Radico Khaitan Ltd. hold the bottom five positions during the same period. The results also indicate that, more or less, the firms having higher market capitalizations have performed well. The results obtained using the EDAS method and other popular MCDM models, such as multi-attributive border approximation area comparison (MABAC) and the Complex Proportional Assessment (COPRAS), show a significant correlation. Further, the outcome of the sensitivity analysis confirms the stability of the performance-based ranking results.

Impact of industry competitive intensity on brand performance: mediating role of market orientation and organizational learning

PurposeThe purpose of this paper is to investigate the effect of industry competitive intensity (ICI) on brand performance with the mediating role of market orientation and organizational learning using theoretical and experimental materials in fast-moving consumer goods (FMCGs) firms.Design/methodology/approachTo test the research hypotheses, a model was designed and tested on 124 chief executive officers from 30 FMCG firms active in both food and chemical industries using structural equation modeling and partial least squares methodology.FindingsThe research findings showed that ICI has significant effect on market orientation and organizational learning. It also has significant effect on the firm’s brand performance through developing the market orientation capability as a mediating variable, but the development of organizational learning capability (as a mediating variable) is not effective in the relationship between ICI and brand performance.Originality/valueSince the early 1990s, addressing intraorganizational capabilities and resources has been a major topic of strategic and marketing research. In this regard, many theoretical and experimental contents have been presented so far. However, little research has simultaneously addressed the industrial environment and the development of competitive capabilities. A manager’s understanding of the competition rate of an industry has the potential to influence the development of organizational capabilities through strategic responsiveness to his/her perception of the environment. This study attempts to show that managers and firms that consider their industrial environment to be volatile must develop their learning capabilities and market orientation, leading to superior brand performance.

Developing firm capabilities to utilise social media for the fuzzy front end of innovation

ABSTRACT Despite the growing importance of using social media to leverage external knowledge for new product development (NPD) in innovation, few studies have examined firm capabilities that underpin this knowledge acquisition route. This paper provides an empirical examination of firm capabilities that leverage external knowledge, utilising social media for the fuzzy-front-end (FFE) phase of the NPD process. With evidence from 27 interviews conducted with executives’ from large fast moving consumer goods (FMCG) firms, a thematic analysis using NVivo 12 is used to develop a conceptual framework capturing the key capabilities for using social media in the FFE. The findings reveal that the utilisation of social media is an ongoing process of experimenting with new technologies within the NPD phase of a firm’s innovation efforts. Hence, the results of the study suggest FMCG firms may consider developing the following capabilities to help effectively acquire external knowledge via social media: use staff specialised in social media for external knowledge identification; dedicate an independent department for social media knowledge acquisition; and encourage an open innovation culture.

Innovative strategies and firm growth: evidence from selected fast moving consumer goods firms in Lagos state, Nigeria

Critical to the sustainability and continuous success of every organization is the performance concept. Hence, the cardinal goal of every organization is to achieve sustainable progressive performance for their organization. Several factors have been found to contribute to the performance of an organization. While empirical evidence indicated that innovativeness is one of the major determinants of organizational performance, many fast moving consumer goods (FMCG) were slow in their demonstration of innovative capability and it has been noted that the performance of these companies has not been impressive possibly due to the slow pace of innovativeness in the industry. This study thus investigated the effect of innovative strategies on the growth of selected FMCG firms in Lagos state, Nigeria. Survey research design was adopted for the study. The population comprised 1,337 top and middle level management staff of four notable players in the FMCG industry in the state (Honeywell flower mills Plc, Dangote flower mills, Unilever Nigeria Plc, and Cadbury Nigeria Plc). Through proportionate stratified random sampling technique, 400 out of 1,337 were sampled for the study. Four hundred copies of a validated questionnaire with Cronbach’s alpha reliability coefficient ranging from 0.731 to 0.956 were administered to the sample with a response rate of 84.25%. Data were analyzed using both descriptive, as well as inferential statistics. Finding revealed that innovative strategies had a significant effect on growth of FMCG firms in Lagos state, Nigeria (R2 = 0.724, β = 0.887, t = 29.663, P ≤ 0.05). The study recommends that FMCG firms management need to initiate policies that will enhance innovativeness possibly through creation and proper funding of the research and development department to effectively drive growth of FMCG firms.

Consumers' Perceptions of Item-Level RFID Use in FMCG

This research explores how perceived consumer benefits affect the perceived privacy risks from implementation of Radio Frequency Identification (RFID) tags at an item-level in the Fast Moving Consumer Goods (FMCG) industry. Two new categories measure the benefits and risks: in-store and after-sales. These specific categories allow the respondents' willingness to accept RFID to be evaluated using a quantitative survey focused on the primary household grocery purchasers within the USA. The results suggest differences in perceptions of the in-store and after-sales risks and benefits of RFID use. While consumers are aware of privacy risks while using RFID technology, they would be willing to use the technology if sufficient benefits are available. This research moves the discussion away from a focus on consumer privacy issues to a balanced privacy/benefits approach for consumers and how that might affect their technology acceptance, suggesting that careful management of consumer benefits might allow FMCG firms to introduce RFID technology to support their global supply chains.

Marketing strategy decisions for brand extension success

This study looks at the marketing strategies used by fast-moving consumer goods (FMCG) firms in developing brand extensions and determines which of these strategies may lead to extension success. First, a qualitative study was done involving in-depth interviews with brand or marketing managers in 12 FMCG firms regarding the development of 19 extensions both successful and unsuccessful. Qualitative data was combined with past research to design a conceptual framework that was used in the second stage of the study. In the second phase, a survey was carried out involving personal interviews of brand/marketing managers or marketing directors in 15 FMCG firms regarding the development of 112 brand extensions. Data was collected through a structured questionnaire and analysed using the PLS method. Results show that there are five marketing strategy components that affect brand extension success significantly, quality of distribution strategy; quality of positioning; quality of product development strategy; extent of promotional investment and extent of market research. Within the quality of product development strategy the most important components are brand extension development quality and brand product portfolio similarity whereas in the quality of distribution strategy shelf quality is very important. Based on the marketing strategy components that were identified as important, a model is developed for analysing marketing strategy decisions for successful brand extensions. This model responds to the need for more structured methodologies in estimating success or failure of brand extensions.

The Impact of Dividend Policy on Shareholders’ Wealth before and After Financial Melt down: Evidence from FMCG Sector in India

Dividend policy (DP) of corporate sector is widely researched topic in finance however; it remains a debatable issue to decide what factors determine the DP. The objective of this paper is to analyze the impact of dividend policy (DP) on shareholders’ wealth (SW) of Fast Moving Consumer Goods (FMCG) sector in India. Out of 16 firms listed on National Stock Exchange (NSE) 13 firms that have been paying dividend consecutively for the past ten years are considered for analysis. In the light of the prior literature, key predictor variables such as earnings per share (EPS),dividends per share (DPS), retained earnings per share (RPS), price earnings ratio (PER), lagged price earning (LAGPER), earnings (EAR), and lagged market value (LAGMPS) are considered for analyzing the impact of DP on SW. The descriptive statistics reveals that the data form in to normal. Whereas when the assumptions needed to be fulfilled for the Ordinary Least Square method (OLS), the data are found to be homoskedastic and are free of autocorrelation.Augmented Dickey Fuller Test (ADF), White - Heteroskedasticity Test, Auto Correlation, Breuch-Godfrey Serial correlation LM test, Durbin-Watson, Lagrange Multiplier (LM) for Autoregressive conditional heteroskedasticity (ARCH-LM), Correlation, Ordinary Least Square Regression and Chow test are applied using Eviews 7 Econometrics software package for analysis. Regression result proves that DPS (121.65) and RPS (9.68) have significant positive co-efficient on EPS(SW) of FMCG firms in India before global financial melt down, while DPS (76.74), LAGPER (1.52) and LAGMPS (0.27) have significant positive co-efficient (76.74) on EPS(SW) of FMCG firms in India after global financial melt down. The results of the Chow test proves that the FMCG firms have significant shift-in-structure (positive improvement) in respect of SW after global financial melt down.

Modeling liquidity management for Indian FMCG firms

Purpose – The present study aims to investigate the impact of liquidity management on profitability of Indian Fast-Moving Consumer Goods (FMCG) firms, as well as the relationship among them, using econometric models. Design/methodology/approach – Liquidity indices like current ratio, liquid ratio, absolute liquid ratio and cash conversion cycle are taken as explanatory variables, whereas age of creditors, age of debtors, age of inventory, sales and inter-temporal growth in sales are taken as control variables. Profitability is measured in terms of return on investment. The sample size is restricted to 18 Indian FMCG firms, and the secondary data for analysis are retrieved from Prowess Database of Centre for Monitoring Indian Economy for 10-year period from 2001-2002 to 2010-2011. Apart from using descriptive statistics and Pearson’s correlation analysis, panel data regression analysis like fixed-effects model and random effects model are used in the study. Hausman test is also used to make a choice betwee...

Modelling working capital management for Indian fast moving consumer goods firms

The purpose of this study is to investigate the effects of working capital management on profitability measured in terms of return on investment of Indian FMCG firms. Working capital management is an imperative issue in financial management decision which has its effect on liquidity as well as on profitability of the firm. The sample size is restricted to 18 Indian FMCG firms and the secondary data for analysis is retrieved from CMIE for ten years period from 2001–2002 to 2010–2011. Apart from using descriptive statistics and Pearson’s correlation analysis, panel data regression analysis like fixed effects model (FEM) and random effects model (REM) are employed in the study. Hausman test is also used to make a choice between these two models. Like previous authors, our study results demonstrate a negative relationship between the measures of working capital management with firms’ profitability.

Liquidity-profitability relationship: empirical evidence from Indian fast moving consumer goods firms

The study aims to explore the effects of liquidity management on profitability of Indian FMCG firms and also the relationship amongst them. Liquidity management is crucial for every firm to meet-up both short term and long term current obligations of business, including operating and financial expenses. The sample size is restricted to 18 Indian FMCG firms and the secondary data for analysis is retrieved from Prowess Database of Centre for Monitoring Indian Economy (CMIE) for the ten-year period from 2001–2002 to 2010–2011. Apart from using descriptive statistics and Pearson’s correlation analysis, panel data regression analysis like fixed effects model (FEM) and random effects model (REM) are employed in the study. Hausman test is also used to make a choice between these two models. The study results reveal a negative relationship between the measures of liquidity management with firms’ profitability, but firms’ size has a strong positive affiliation with profitability.

Promotional channels of FMCG firms and tourism

PurposeThe purpose of this paper is to shed more light on the influence of a tourism‐oriented environment on the promotional channel strategies of fast‐moving consumer goods (FMCG) firms.Design/methodology/approachThe study utilises an exploratory, qualitative research design among 14 case studies of FMCG firms operating in the tourism‐oriented environment of Greece.FindingsFindings show that most firms utilise adapted promotional channels due to the influence of structural characteristics of the tourism industry and tourists' modes of behavior.Research limitations/implicationsThe outcomes of this qualitative study are limited to the context that is investigated and thus, future researchers are encouraged to investigate similar contexts with the goal of generalising findings.Practical implicationsFindings suggest that firms ought to appreciate the contextual idiosyncrasies of Euro‐Mediterranean countries (as a result of international tourism) and thus, tailor their programs to these idiosyncrasies, which are distinct from other non‐tourism‐oriented environments.Originality/valueTo the best of the authors' knowledge, this is the first paper that investigates the effect of tourism‐induced idiosyncrasies of Euro‐Mediterranean countries on FMCG firms' promotional strategies. In light of the increasing importance of global consumer mobility, such studies are expected to increase.

Issues influencing marcoms in a global context

The marketing methods, strategies, and tactics deployed by global, multinational, and domestic firms are undergoing rapid and consistent change. The break-up of old style mass markets, new technological developments, international and national economic fluctuation, and the proclaimed emergence of global markets which indicates global competition, are impacting strongly on the ways firms develop and apply marketing and, within the domain of marketing-marketing communications. We have identified seven overarching developments with respect to marketing communications. These developments are discussed in turn in this conceptual paper and are in line with organizational changes typified by writers such as Toffler and Toffler (1990), McKenna (1991), and Hammer and Champy (1995). The discussion then focuses on development of an integrating structure that attempts to draw together the growing caucus of knowledge concerning database marketing, integrated communications strategies, and multinational marketing, illustrating these developments with reference to two case vignettes. The conclusion then links these strands together in considering their impact on global marketing communications: (1) growth in advertising and promotion, (2) emergence of the global consumer; (3) development and importance of integrated communications: (4) direct marketing-a new promotional tool? (5) database marketing-towards coordinated strategy; (6) internet advertising-a form of promotion? and (7) coordination and control-process vs output. In this paper we present and discuss these various issues. Admittedly, while some may be conjectural, it is evident that these are vital developments underpinning the major marketing mix variable-promotion! It is worth mentioning that each of the issues tackled in this paper are being tested empirically with in-depth interviews with multinational fast moving consumer goods firms, with headquarters in the United Kingdom.

Public Relations: A Rationale for Its Development and Usage within UK Fast moving Consumer Goods Firms:

Considers the development of public relations in UK fast‐moving consumer goods (FMCG) firms. Argues that public relations is making some inroads into the traditional marketing promotional mix by acting either in a complementary way or in place of traditional advertising. Also considers the diversification of public relations activities at the corporate level; and the trend towards interaction and integration of the corporate and marketing public relations functions. Through in‐depth interviews with ten leading, but unnamed, UK FMCG firms, argues that public relations has been developing in emphasis and expenditure within such firms over the past decade. Undertakes an approach to describing a rationale for the growth of public relations.