Within the fast evolving and highly competitive business environment that is today, new businesses will need to fine tune the processes undertaken which help in the overall success of the company within the business industry. FMCG is the abbreviation for ‘fast moving consumer goods’. FMCG Companies manufacture retail products that have a relatively short shelf life because they have a high turnover rate or because the product deteriorates rapidly, for example fresh food products (Jaray, 2005, p. 23). The goods must be bought every week or few weeks according to (Powell and Hardy et al., 2013). The authors go on to say that the goods must be cheap and that the FMGC business model must have a high volume/low margin. It must also include brand loyalty into the business model, as “FMCG companies cannot survive in business without many category buyers choosing the advertised brand regularly.” Furthermore (Heggde, 2010) shows examples of the biggest FMCG companies being Nestle, Unilever and Proctor and Gamble, with its products being chocolate bares, toilet paper, and soft drinks. The author states that examples of FMCG brands are coca cola, Kleenex, Pepsi and mars bar.
The new business will need to have a brand that is going to be attractive to its market, and will allow for the consumers to choose the product without hesitation. Exhibited by (Lancaster and Withey, 2007) f the authors for example, state “the product is bought frequently with little information search or alternative evaluation by customers.” Ultimately From this the company will therefore need to provide a brand to the consumer that is trustworthy and satisfies their needs allowing for customers to buy the product over and over. Without the correct processes that help build the FMCG Company, the business will essentially fail, as each process helps in achieving the regular sales needed to be sustainable. Therefore it is essential to look at how the new business will succeed in doing this.
This essay will critically evaluate the processes and practices that a new business will need to go through in order manage a company within the fast moving consumer goods (FMCG) industry. The essay will show how the initial selection of an opportunity in the FMCG market is conducted, followed by discussing the methods that a new business in the industry can use to select and detail their new product. Therefore the planning processes and development of the product and its launch will follow this, including an emphasis on how the new business will research methods that will support the decisions being made. The essay will finally look at how the business intends to get the product to market. This includes the media/marketing paths intended to attract the target market. Exploring each of these processes being undertaken will allow for outcomes to be presented, creating a consideration as to why the business should carry out these activities, the advantages and perhaps disadvantages of...