Identifying Differences Among Businesses Essay

3935 words - 16 pages

Identifying Differences Among Businesses

In order to identify, analyse and evaluate the major differences along
the supply chain between the business-to-business (B2B) and the
business-to-consumer (B2C) marketing in the manufacture and retailing
of fast-moving-consumer-goods, it is important to define the different
terms.

According to Wright, the supply chain can be defined as ‘the entire
network of suppliers, factories, warehouses, distribution centres and
retailers that participate in the process from raw materials to
finished products.’(www.soltempo.com)

The fast-moving-consumer-goods (FMCG) can be defined as ‘the retail
goods with a short shelf life either as a result of high consumer
demand or because the product deteriorates rapidly.’ (www.graduateopportunities.com)
For instance, meat, fruit and vegetable, dairy products are perishable
FMCG and alcohol, toiletries and cleaning products are FMCG with high
turnover rates.

B2B marketing is according to Wright (2004) ‘where one business
markets products or services to another business for use in that
business or to sell on to other businesses for their own use.’ B2C
marketing is ‘where one business markets products and services either
to another business, i.e. a wholesaler or a retailer to sell on to the
end consumer, or to the end consumer direct.’ (Wright 2004)

This report focuses on the FMCG market and provides an overview of the
main differences in B2B and B2C regarding the market, the decision
making process and the marketing mix.

2. The market

2.1. An overview

The FMCG is a low-margins business. It is extremely competitive.
According to the firm Invensis ‘the smaller companies tend to
specialise in production of category products. A few global giants
produce many brands but those brands fall into self contained
categories as well.’ (http://www.marcam.com) Thus the market is not
one market but a collection of markets with many different types of
products processes and requirements.

2.2. The competition

In B2B, the different participants are the raw material suppliers,
service suppliers, the producers or manufacturers, intermediaries or
resellers, retailers, government and not-for-profit. The competition
comes mainly from few players as ‘the products must match a particular
solution sought’ (Wright 2004). With technology and the internet, the
competition is more and more international. It focuses on functional
benefits offered and after sales services as functionality and
reliability are crucial for an organisation.

In B2C, the main participants are the retailers, the wholesalers and
the end consumers. In the FMCG, there has been increasing market
concentration in recent decades. There is a reference to the ‘big
four’, Tesco, Asda, Sainsbury’s and Safeway. The competition is global
...

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