Strategic Management for FMCG Market During Recession - Dissertation Example

During recessions depending on its severity, the only surviving product that is still moving is the FMCG's otherwise known as FMCG. These are the essential products that are used by the consumers in their everyday lives. An example of FMCGs is coffee, milk, and sugars. Infant foods or pharmaceutical products used in the maintenance of ailments such as anti-hyper tension and anti rejections are also considered FMCGs. Laundry and dish washing soaps, including body soaps and shampoos, are also considered as FMCGs.

Every FMCG manufacturer’s or distributor’s goal is to capture a big chunk of the market as much as possible during a recession since the trust that will be gained from the brand will be carried over until the recession is over. The foot in the door approach as a strategy for FMCG is an effective way of capturing a large chunk of the market. The most efficacious way of staying on the radar of consumers is the FMCGs price. During a recession, the resource that is the most affected is the liquidity of the company and most especially the consumers.

Thus maximizing the use of money is the most potent approach for consumers to survive the recession. Armed with this knowledge further investigation was conducted for the purpose of determining the efficacy of the strategy of value-pack packaging as the direction of capturing the FMCG market. However, the investigation leads to the realization that value pack packaging is also environmentally harmful since it costs a lot of packaging raw material to packaging FMCG in smaller packs or volumes. . Thus maximizing the use of money is the most potent approach for consumers to survive the recession.

This paper investigated the theory by conducting a survey to verify the behaviour of consumers during recessions. Further investigation through the use of surveys determined that due to the affordability of products that are packaged in smaller volumes consumer behaviour therefore gravitate towards this direction. Armed with this knowledge further investigation was conducted for the purpose of determining the efficacy of the strategy of value-pack packaging as the direction of capturing the FMCG market.

However, the investigation lead to the realization that value pack packaging is also environmentally harmful since it costs a lot of packaging raw material to package FMCG in smaller packs or volumes. Not only that but the intended reduction in price may not be realized since the cost will be eaten by the packaging materials and the increased cost of warehousing the added volume of smaller packs packaging. Acknowledgement I would like to acknowledge the many people who have supported me and provided me with moral and actual assistance during the time when I needed it most.

The many stress filled sleepless nights has been made bearable with the help of the following people. My family who has given me the strength and moral support to continue to be resilient and strong while making this paper, my MBA Course Moderator, Ms. Helen Goworek for the guidance and support, Dr. Paul Yap (Executive Director, FMCG Company) for writing approach and Guidance. The many unknown faces of grocers, store owners and FMCG industry packaging supervisors who was patient in answering incessant questions about the FMCG industry.

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