FMCG Industry Research Articles

The nexus of employee’s commitment, job satisfaction, and job performance: An analysis of FMCG industries of Pakistan

The purpose of this study is to analyze the dimensions of job satisfaction and organizational commitment by using a more comprehensive approach to address job performance. The structural equation modeling analyses have been used to analyze the data collected from managers of fast-moving consumer goods. This study strives to examine the role of normative organizational commitment, affective organizational commitment, and continuous organizational commitment in predicting individuals’ job satisfaction, which further leads to job performance. The findings of the confirmatory factor analysis establish the excellent model fitness of the studied model. Furthermore, the results of structural equation modeling conclude that the significant association of all three forms of commitment to affect the job satisfaction of employees positively. The results indicate that normative commitment is the most influential form of organizational commitment, while continuous commitment is the least influential in impacting job satisfaction. Furthermore, the outcomes established a significant positive relationship between job satisfaction and job performance of employees of the fast-moving consumer goods sector of Pakistan.

Consumer Buying Behaviour of Shampoo: With Reference to Women of Pollachi Taluk, Tamilnadu

'Consumer is king'-the statement carries profound truth in it. Today the success of any firm depends upon the satisfaction of consumers. For satisfying the consumers the firm should know about the behaviour of the consumers. In these circumstances understanding consumer is a very difficult task because of the changing technology, innovation, and changes in life style. Researchers conducted many research in this area, and they given only few suggestion, but there is no final conclusion. In today's global market, brand awareness among consumers play a decisive role in the sales turnover of the company. India's FMCG sector is the fourth largest sector in the economy providing employment to millions of people. Tough competition, low per capita consumption, low operating cost, and big distribution network are some of the characteristics of Indian FMCG industry. Main components of Indian FMCG industry are Household Care, Personal Care, Food& Beverages. Shampoo market in India is in excess to Rs. 4000 Crore and has shown more than 15% year-on year growth in last few years. Changing lifestyles and value systems across the society is contributing towards growth of shampoo market. Looking good and stylish, and image enhancement are some of the things attached to modern lifestyles and this is helping shampoo market to grow. The data is collected through primary and secondary sources. The results revealed that, the majority of consumer use Hindustan Uniliver Limited shampoo brands.

Critical Success Factors of Enterprise Resource Planning (ERP) Systems Implementation in Sri Lankan Fast Moving Consumer Goods (FMCG) Industry

Enterprise Resources Planning Systems (ERP) are implemented in organizations to optimize the supply chain to improve the overall performance. Yet, it is observed that many organizations have not achieved the desired level of performance through this strategic move. Literature suggest that the implementation barriers can be a main reason for this. Hence the problem centered in this study is to identify the success factors and challenges of ERP systems implementation in the FMCG industry in Sri Lanka. This study uses the case study approach for four companies in the FMCG industry. Focus group interviews were used to gather data and the participants of the focus group interviews were key users who had an important role during the implementation. Semi-structured interviews were conducted by an experienced interviewer using an interview guide with semi-structured questions. Success factors included the technological know-how, high management commitment, lesser government regulations, and experience of the process re-engineering. Challenges included investment in resources, information management, changing the organization culture to the best practices of the system, lack of the user training and limitation of the proper consultancy services. Findings of the study can be used as a framework to understand the ERP implementation success factors and the potential challenges faced by organizations in the FMCG industry.

A Comparative Study on Working Capital Management and Cash Flow Analysis Practices of Selected Companies in FMCG Industry

A Comparative Study on Working Capital Management and Cash Flow Analysis Practices of Selected Companies in FMCG Industry

The Impact of Green Supply Chain Practices in Business Performance: Evidence from Pakistani FMCG Firms

This research paper examines the effect of three factors of green supply chain (GSC) practices on organizational performance in the perspective of Pakistani FMCG companies. A sample of 191 companies was collected from the FMCG industry. The GSC practices were measured by three independent variables including green transportation, green distribution and green purchasing. By using exploratory factor analysis and linear multiple regression, the findings show that except green purchasing rest of the two variables (green transportation and green distribution) have been found positive and significant to estimate organizational performance. Therefore, the managers and directors of the FMCG firms should adopt green practices in their distribution and transportation operations to enhance overall organizational performance. The key contribution of this study from theoretical side is that it is possible to sign a negative impact of green purchasing on organizational performance in the context of Pakistani FMCG industry.

An Integrated SEM Neural Network Approach to Study Effectiveness of Brand Extension in Indian FMCG Industry

Brand extension as a strategy is used by corporates for increasing profits. It is an approach for new product development. Brand extensions have already been studied in the past few years, however, till now extensions have not been evaluated with the help of structural equation modeling (SEM) and neural networks (NNs) integrated approach. The NNs help to analyze nonlinear influence in data without prior knowledge of such influences. The SEM helps to validate framework proposed in the study and the significant variables gathered through SEM are used as an input for NNs. The major advantage of such kind of hybrid technique is to understand the causal relationships in the variables, followed by the prediction of factors which influence brand extension. The study is based on the recent brand extension done by brand Frooti in the form of Frooti Fizz (an aerated fruit drink). It is a cross-sectional study with the sample size of 281 respondents from Delhi/NCR region. The results of the study are useful for a comprehensive understanding of factors affecting brand extension and also to identify the relative importance of each of them through the use of NN Technique.

Multi-dimensional Information Visualization Analysis of Business Circles and Products Based on Density Clustering

Modern agricultural products and FMCG industries are concerned about how to gain insight into market status information, product sales trends, and user characteristics from market sales data, so as to provide consumers with personalized product services. However, sales information often has the following characteristics: large amount of data, multiple data dimensions, varying values, and rapid changes in market information, and traditional analysis methods are difficult to analyze and use effectively. A multi-dimensional information visual analysis of shopping districts and products based on density clustering is proposed. Firstly, density-based clustering is applied to the geographic information on a large number of market retail households, and the most valued business district is obtained according to the multi-density ranking. Then use the user ID to associate order details to get a data-driven small targeted dataset. Finally, using a variety of visualization methods, multi-angle visualization analysis of multi-dimensional information is analyzed with business circles and products as the main body. Use real data onto case analysis. This analysis method can effectively reflect the laws of the sales market, development model, and consumption structure. It helps manufacturers and retailers to grasp the dynamic information and laws of market development in a timely manner and achieve the purpose of precision marketing and smart decision-making.

Engineering patterns of supply chain optimization to manage oscillation effect

The cascading order variability from downstream trumping up the upstream site of the supply chain network indicates the deleterious effect to the performance of the fast moving consumer goods industry. The fundamental likelihood to optimization in this industry requires dexterous flows of quasi-real-time information, as well as reliable product availability. In this context, this study analyzes the challenges of bullwhip effect on the perspective of ingenious optimization strategies, and further contemplates to establish the engineering patterns of interrelationships on the magnitude of pooling the resources to advance supply chain capabilities. The suppression of bullwhip effect on underlying optimization strategies is sought to elevate accelerated responsiveness, improve network demand visibility and reduce volatility in frequencies to inventory replenishment. A rigorous and disciplined quantitative approach afforded the tentatively development of pattern of interrelated supply chain dimensions. The factor analysis method was used on 448 responses and insightful findings were produced from the compelling purposive sampling technique. The findings indicate that the magnitude of better ameliorating bullwhip effect, the value of competitive economic information and strength of selected optimization strategies depend on the model of unified engineering patterns. This paper provides insights to FMCG industry on using innovative strategies and modern technology to enhance supply chain visibility through integrated systems networks.

Impact of celebrity endorsement on the buying behaviour in non durable goods (with special reference to FMCG)

The FMCG industry is facing stiff competition in advertising and brand promotion. There are many FMCG brands available in Indian market which are competing each other on the basis of product features and through celebrity endorsement. The advertisers see this as an opportunity to grab and work on so as to expand their operations and promote their product. It has turned out to be a trend and seems to be a winning method for product, marketing and brand building. This paper aims at investigating the impact of celebrity endorsements with respect to their physical attractiveness, trustworthiness and expertise of celebrity endorsed and purchase intention of the consumers of FMCG. The study revealed that celebrity endorsement is correlated with buying behavior and has significant effect on both male and female customers of FMCG. It was also found that the most prominent factor of celebrity endorsement is ‘trustworthiness’.

Psychological Contract:A Study of Different Variants in FMCG Companies

In the globalized world, managing human resources is one of the critical challenges for today's organizations. Increasingly it is understood that cultivating Psychological contract among people of the organization is the fundamental aspect of this employee-employer relationships. The p sychological contract includes informal arrangements, mutual beliefs, 'promises' or 'expectations' that are exchanged between the parties in an employment relationship. Four variants of Psychological contracts are Relational contracts, Transactional contracts, Transitional contracts and Balanced contracts. The present study is original one aimed at developing a deeper understanding about psychological contract and employment relationship amongst employees serving FMCG industry in India, taking into consideration strength of all variants of psychological contracts.

Understanding Sales Volume Antecedents: Measuring the Role of Consumer-oriented Selling and Sales Promotion in Iran FMCG Industry

The recent economic downturn has had a significant negative impact on hitherto such fast-growing economies as in the Middle East. The economic downturn has had a significant impact also on consumption patterns of the population which is reflected in heavy decline in retail turnover. Understanding the consumer base and influence of creating values on purchasing decisions enables businesses to adopt better strategies. Classification of consumers becomes important. The results of structural equation analysis by LISREL were utilized to test the proposed hypotheses in this study. Subsequently, all hypothesized relationship was supported. Understanding each of classification factors which measured will help companies, corporate and understand their strengths and act in best way. The result shows that all sales promotion dimensions are independently and jointly predict sales volume. This implies that coupon, premiums, bonus, free samples and price promotion have significant effect on sales volume.

Social Innovations For Fmcg Sector

Indian economy is one of the largest emerging markets due to increasing population, rising per capita income and rapid urbanization. FMCG products touch every aspect of human life. Indian FMCG industry is the fourth largest sector in the economy and there is immense scope of growth in future as a result of changing lifestyle and consumerism. Due to liberalization, privatization, globalization and inflow of foreign direct investment, multi-national companies have shown intense competition to Indian companies especially in case of FMCG sector. In this globalized world, Indian companies have to come up with innovative products to capture the market share. Due to increasing brand consciousness and rising internet penetration, there is need of innovative marketing techniques and strategies to attract consumers towards Indian products and remain competitive to survive in the international market. Indian FMCG companies have to focus on core competency, modern and latest facilities and use state of art technology to ensure standard quality and value of the products. The companies need to plan innovative marketing strategies customized to the specific needs of Indian consumers, emphasizing on social and sustainable development. The paper discusses the overview of Indian FMCG sector, its future prospects and different innovative ways to establish Indian products that will accelerate the future growth of FMCG sector- an engine for economic growth.

Corporate Social Responsibility: Entrepreneurial initiatives of Indian FMCG Industry

Nowadays business is not just for profit making. Rather, business houses across the globe are realizing their stake in the society and hence they have started undertaking various CSR initiatives voluntarily. As per the clause 135 of the Companies Act, 2013 any company having a turnover of Rs 1000 crore or more or a net worth of Rs 500 crore or more or a net profit of Rs 5 crore or more should mandatorily spend at least 2% of their net profits per fiscal year on various CSR activities. Presently in India, CSR initiatives are taken by many companies. Especially, in the FMCG companies where reducing the packaging material is posing a major challenge. Hence, these companies are working in the field of environment, community welfare, health care, education, women's empowerment and girl child care. The present study explores the existing literature available on Corporate Social Responsibility. The contribution of various renowned researchers towards CSR, starting from the first definition given by Bowen (1953), has lead to the development of existing concept of CSR. Further, the study also elaborates upon the various CSR initiatives taken by the two leading Indian FMCG companies: Dabur India Limited and Hindustan Uniliver Limited in different areas.

Decoupling paradigm of push-pull theory of oscillation in the FMCG industry

The amplification of demand order variability germinates from distorted demand information upstream while sometimes reacting to demand-driven inventory positioning influenced by the custodians of downstream information. This studyuses factor analysis to tentatively develop a supply chain model to enhance the competence of supply chain performance in terms of responsiveness, connectivity and agility. The results of the analysis indicate that the magnitude of control on the bullwhip effect and access to economic information on demand orders in the supply chain network are associated with the modelling of the push-pull theory of oscillation on three mirror dimensions of supply chain interrelationships (inventory positioning, information sharing and electronically-enabled supply chain systems). The findings provide the perspective on managing amplification in consumer demand order variability upstream in the supply chain network while enhancing the overall efficiency of supply chain performance. This article provides insight into the use of innovative strategies and modern technology to enhance supply chain visibility through integrated systems networks.

The Effect of Religiosity and Personality on Work Ethics: A Case of Muslim Managers

The study of the Muslim managers’ religiosity, personality and behavior has been underdeveloped. In this study, we examined the impact of religiosity, personality and behavior on Islamic work ethics. We posited that Islamic religiosity impacts on Islamic work ethics, personality and behavior positively. We also hypothesized that personality and behavior impacts on work ethics positively. Data were collected from 253 Muslim managers in FMCG industry in UAE. Data were quantitatively analyzed using structural equation modelling (SEM). Results were in keeping with the model. The level of religiosity however was not found to affect Islamic work ethics directly but through the behavior and personality of Muslim managers. Theoretical implications and managerial ramifications were also discussed.

Achieving distribution equity through emotional functionalities and value-based bonding: An analysis with structural equation modeling

In the current competitive situation, distribution channels play an important role to create and develop a value-based setup in which companies can easily pipeline their products into the market. The distribution channels and their efficiencies are dependent on relationship bonding between channel partners and the company, backed by company value-sharing policies. Both emotional functionalities and tangible functional value play key roles in the success of distribution channel management. The current research is a thoughtful attempt to develop a framework to understand and explore the linkages among emotional linkage, tangible functional value and the value-based channel nexus to strengthen channel-based distribution equity. A total of 156 direct responses from channel members were collected from the FMCG industry across business territories of eastern India. The empirical data was analysed with structural equation modeling. The findings of the current research article illustrate a novel approach to manage a marketing distribution channel to create a higher level of emotional connectivity and engagement between the company and distribution channel partner. This would lead to the creation of channel-based distribution equity in the FMCG industry.

Minimization of Waste Due to BBD in FMCG Industry

Best before date (BBD) is the period of time that a commodity may be stored without becoming unfit for use, consumption, or sale. In other words, it means that a commodity should no longer be on a pantry shelf (unfit for use), or no longer on a megastore shelf (unfit for sale, but not yet unfit for use). Consumers misunderstand what the best before date actually means which lead to wastage of products by them. We model and study the reasons of BBD through Fishbone approach and Pareto analysis. With specific focus on best before date and remaining shelf-life, we develop methods of reduction of waste in FMCGs. RFID (Radio-Frequency Identification) has been proposed as an emerging technology that could help reduce wastage in perishable food supply chains.

Impact of Consumer Centric Marketing Mix Elements on Consumer Buying Behavior : An Empirical Investigation in Context of FMCG Industry of Pakistan

The pivotal role of Consumers in modern marketing sphere has emerged the need for marketers to become customer focused rather product or producer focused. This transition has indeed revitalized the theory of marketing mix elements but with a modified form from 4P’s to 4 C’s paradigm. The ever increasing role of customers in the marketing philosophy has signified the need for shifting from being producer centric to being consumer centric. Keeping in view this need for an innovative marketing model, the aim behind this research is to discern the effects of 4C’s on users purchasing behavior. Grounded on positivism paradigm the cross sectional technique was adopted for the collection of primary data but the use of quantitative research method. A Sample of 300 FMCG customers was selected using multiple sampling techniques to accommodate geographic dispersion as well as demographic diversity of the customers of FMCG. Three clusters were drawn from Lahore, Karachi and Islamabad. Then the data was gathered using close ended questionnaires. The Correlation and regression were applied for the testing of hypotheses. The results showed that the more companies are consumer centric, the more consumers behave in favor of the company’s products. It is found that consumer solution, consumer convenience, consumer communication have positive and strong connection with the customer buying behavior. Whereas consumer cost have negative relationship with consumer buying behavior.

Supply chain management practices as a contemporary source of securing competitive advantage and organisational performance: evidence from the FMCGs of Pakistan

The main objectives of the present study are to explore the underlying dimensions of supply chain management practices SCMP and to investigate the casual relationship among supply chain management practices upstream, downstream and internal lean supply chain practices, competitive advantage and organisational performance with specific emphasis on fast moving consumer goods FMCG industry of Pakistan. The data were collected from 210 n = 210 white-collars of FMCG companies operating in Pakistan. Exploratory factory analysis and standardised multiple regression analysis techniques were performed to address research questions. Based on exploratory factor analysis, the 16 SCM practices were grouped into three factors: upstream supply chain practices USCP, downstream supply chain practices DSCP and internal lean supply chain practices ILSCP. The results of the regression analysis indicate that all three dimensions of the SCM practices have statistically significant effect on competitive advantage and organisational performance. The managerial implications for the effect of SCM practices on competitive advantage and organisational performance are discussed.

Promises of silent salesman to the FMCG industry: an investigation using linear discriminant analysis approach

Abstract Packaging which is often called as the ‘silent salesman’ is an important component of marketing. Today the importance of packaging has risen to such an extent that product packaging is rightly called as the fifth ‘P’ of marketing mix. FMCG are products which are utilized by large number of people. The present study examined the discriminating power of five selected FMCG packaging variables namely ‘picture’, ‘colour’, ‘size’, ‘shape’ and ‘material’ amidst those who purchased FMCG based on these packaging variables and for those who purchased FMCG not based on these packaging variables. Descriptive research was carried out in the study. Respondents (students) were asked to rate four packaging variable on a five point Likert’s scale. Discriminant analysis showed that only two variables namely ‘Colour’ (.706) and ‘Shape’ (–.527) were good predictors. Variables ‘Picture’, ‘size’ and ‘material’ were considered as poor predictors as far as the student communities were considered. The cross validated classification showed that out of the 240 samples drawn, 91.8% of the cases were correctly classified.