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Article
Publication date: 30 January 2007

Kelly Hlavinka and Leopoldo Gomez

The purpose of this paper is to examine how consumer packaged goods (CPG) companies are harnessing the power of loyalty marketing to improve their sales and branding effectiveness.

Abstract

Purpose

The purpose of this paper is to examine how consumer packaged goods (CPG) companies are harnessing the power of loyalty marketing to improve their sales and branding effectiveness.

Design/methodology/approach

The paper cites examples of CPG loyalty efforts from Procter & Gamble, Tazo Tea, Huggies diapers, Moet Hennessey, Maker's Mark, Purina dog food and others, it outlines two primary models that CPG marketers are pursuing, each with their own approaches, levels of investment and possible outcomes.

Findings

The paper explores the many obstacles CPG marketers must overcome if they desire to shift from mass advertising to a more customer‐centric marketing model and cites examples of successes and failures from a variety of organizations.

Research limitations/implications

“The CPG industry has often been the odd man out even as brands in nearly all industries around the globe have pursued loyalty marketing as a primary tactic of their overall enterprise customer strategy”, note Hlavinka and Gomez. “Is it because the CPG industry views the retailers who sell their goods as their primary market, rather than the consumers who actually use them? Is it lack of concern for the consumer? Lack of focus? Lack of expertise? All of the above? These are the questions that our research set out to answer.”.

Practical implications

The reader will come away with some specific ideas for improving the effectiveness of their private label credit card program. Armed with the knowledge of the scope and size of the private label credit card market, readers should gain insight that will improve their decision‐making about their own program.

Originality/value

The paper takes a look at the emergence of loyalty programs in the consumer packaged goods industry and what is ahead for this burgeoning trends.

Details

Journal of Consumer Marketing, vol. 24 no. 1
Type: Research Article
ISSN: 0736-3761

Keywords

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Article
Publication date: 1 October 2005

Aziz Ahmed, Naser Ahmed and Ahmed Salman

This paper aims to examine salient issues in the packaged food business with special focus on packaging and its crucial role covering food marketing, best practices in the…

Abstract

Purpose

This paper aims to examine salient issues in the packaged food business with special focus on packaging and its crucial role covering food marketing, best practices in the food and drinks industry, product innovation, food safety and quality, food supply chain management and emerging trends.

Design/methodology/approach

Phenomenological research has raised awareness and increased insight into critical issues in the packaged food business. The approach is based on observation of the business environment, online research, a close watch on British food industry, analysis of papers in journals, and brainstorming with co‐researchers for four years.

Findings

The research has found that the key trends fostering growth in developed packaged food markets are convenience, functionality and indulgence. The real value of packaging is that the package is an integral part of the product today. Besides, food products frequently require the general marketing approaches and techniques applied to the marketing of other kinds of products and services. In addition, for the food industry to improve further, it needs to adopt the best practices shown in this research paper. Moreover, while going for product innovation, some critical success factors must be taken into account. Furthermore, the objective of all quality assurance systems exercised by food manufacturers and processors, is to produce safe products that comply with manufacturers' specifications, including the requirements established by governments. On top of that, the companies that are the most progressive in the management of the supply chain are expected to be the most successful and profitable. Last, but not least, companies should look forward to emerging trends for business success. All these critical issues must be observed in a packaged food business for superior performance.

Research limitations/implications

Company surveys have not been performed due to the limited access of the research to well‐developed Western food markets. Hence, company surveys may be the next step to further identify critical issues in the packaged food business from the perspective of existing corporations.

Originality/value

This paper offers a holistic view that would guide a reader to identify critical issues in packaged food in existing or new businesses.

Details

British Food Journal, vol. 107 no. 10
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 1 February 1990

Gordon Wills, Sherril H. Kennedy, John Cheese and Angela Rushton

To achieve a full understanding of the role ofmarketing from plan to profit requires a knowledgeof the basic building blocks. This textbookintroduces the key concepts in…

Abstract

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

Details

Management Decision, vol. 28 no. 2
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 1 February 1987

Robert J. Kopp and Stephen A. Greyser

Consumer packaged goods is an industry long known for its reliance on “pull” marketing strategies, that is, clever brand positioning supported by heavy advertising and…

Abstract

Consumer packaged goods is an industry long known for its reliance on “pull” marketing strategies, that is, clever brand positioning supported by heavy advertising and couponing. As many product categories have become mature in the 1980's, managers find themselves increasingly concerned with improving the productivity of “push” programs — trade deals and personal selling efforts aimed at retailers and wholesalers. This article reports the results of an in‐depth, descriptive study of “push” marketing techniques among packaged goods companies. Discussed are: (a) specific “push” programs initiated on both the marketing (brand management) and sales force sides of the business, and (b) organizational moves to enhance integration and coordination between the Sales and Marketing groups. A concluding section urges packaged goods marketers to regard the “push” and “pull” components as twin building blocks of a companywide marketing strategy.

Details

Journal of Consumer Marketing, vol. 4 no. 2
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 5 June 2017

Amit K. Ghosh

The constantly changing prices, promotions, and packaging options have made decision making more complex for consumers of packaged goods. The purpose of this paper is to…

Abstract

Purpose

The constantly changing prices, promotions, and packaging options have made decision making more complex for consumers of packaged goods. The purpose of this paper is to explore how price and promotions influence consumer propensity to buy a certain package size.

Design/methodology/approach

Scanner panel data for shelf-stable salad dressing obtained from Information Resources Inc. were used to compute the proportion of large packages bought, the relative price paid for large packages, propensity to use various types of promotions, and a behavioral covariate for each household. Data of over 5,600 households were analyzed using a multiple regression analysis for hypothesis testing.

Findings

The positive nature of relationship between the relative price of large packages and the proportion of large packages bought demonstrates the suboptimal nature of consumer decision making. The inefficiency is partially attributable to the abundance of promotions, to consumers’ lack of price awareness, and to the use of heuristics by consumers. Also, consumers who are prone to use promotions such as displays and temporary price reductions tend to purchase larger packages. They are more likely to buy impulsively and base their decisions on heuristics. In contrast, consumers who are influenced by featured price cuts and who utilize coupons tend to purchase smaller packages.

Research limitations/implications

Data were obtained from grocery stores; only a single product category was studied.

Practical implications

Offer coupons and advertise featured price cuts on small packages to increase the sales of smaller packages. To move large packages successfully, retailers should rely more on in-store displays and temporary price reductions.

Originality/value

The impact of price and promotions on package size propensity has never been investigated. This study is also one of the few that uses a household-level analysis based on observable purchase data for consumer packaged goods.

Details

American Journal of Business, vol. 32 no. 2
Type: Research Article
ISSN: 1935-5181

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Article
Publication date: 8 February 2016

Vincent Onyemah and Simon O. Akpa

The purpose of this paper is to offer a state of the art description of open air markets (OAM), a little-known phenomenon that is indispensable in Africa’s consumer

Abstract

Purpose

The purpose of this paper is to offer a state of the art description of open air markets (OAM), a little-known phenomenon that is indispensable in Africa’s consumer packaged goods industry.

Design/methodology/approach

A qualitative methodology comprising in-depth semi-structured interviews and direct observation was employed.

Findings

Analysis of data from Nigeria, Africa’s largest economy and most populous country, reveals that channel members have roles that are different from that of their Western counterparts. For example, distributors often do not distribute and principals are expected to actively sell on behalf of their distributors to empty the latter’s warehouse. Also, while many end-users in developing countries expect credit sales and opportunity to bargain, extant literature does not include these demands in the formal list of service output demands. Another major finding is the surprising order underlying OAM. It is the bedrock of commercial activities: for most consumer packaged goods manufacturers, sales through OAM account for over 90 percent of revenue.

Research limitations/implications

The focus on one industry and country limits the generalizability of the above findings.

Practical implications

Africa is the next growth frontier. Tapping into this growth requires a deep understanding and appreciation of the important role played by its unique marketing channels.

Originality/value

Given the dearth of documented knowledge about marketing channels in emerging markets, this study addresses an important gap. Its findings could inform theory development and encourage more research on marketing channels in developing countries.

Details

International Marketing Review, vol. 33 no. 1
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 31 May 2011

Richard Lee, Cam Rungie and Malcolm Wright

The purchase distribution of consumer packaged goods has been extensively modelled by the negative binomial distribution (NBD). As the characteristics of packaged goods

Abstract

Purpose

The purchase distribution of consumer packaged goods has been extensively modelled by the negative binomial distribution (NBD). As the characteristics of packaged goods differ from those of subscription services, the latter may be a boundary condition for NBD. In this study, the authors aim to test whether NBD extends to a subscription service. Also, NBD assumes non‐heterogeneous purchase behaviour. The authors determine whether augmenting the model with a covariate (customer tenure) to account for consumer heterogeneity will produce a better fitting model.

Design/methodology/approach

Phase 1 fitted a base NBD model using a random set (n=1,546) of mobile‐telecommunication consumption (monthly billed amount). Phase 2 extended the base model by incorporating customer tenure as a covariate, and re‐fitting the model.

Findings

NBD does apply to subscription markets. Also, accounting for heterogeneity in customer tenure produces a better model fit, and shows that with increasing tenure individual consumption declines but total consumption increases due to fewer light buyers.

Research limitations/implications

The NBD fit suggests that mobile‐telecommunication consumption is habitual, and casts doubt on the effectiveness of marketing programs such as loyalty programs to spur the consumption. The fit also establishes that NBD can serve as a benchmark against which the effects of marketing actions can be evaluated. A potential limitation is the continuous, rather than discrete, nature of the service consumption data.

Originality/value

By extending NBD's boundary condition, this study further attests to the model's robustness in modelling purchase behaviour. It illustrates the technique of augmenting the model with marketing covariates to improve model fits.

Details

Journal of Product & Brand Management, vol. 20 no. 3
Type: Research Article
ISSN: 1061-0421

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Book part
Publication date: 12 September 2003

Bart J. Bronnenberg and Paulo Albuquerque

A significant portion of academic research on marketing strategy focuses on how national brands of repeat-purchase goods are managed or should be managed. Surprisingly…

Abstract

A significant portion of academic research on marketing strategy focuses on how national brands of repeat-purchase goods are managed or should be managed. Surprisingly little consideration is given in this tradition to the extended role of geography, i.e. distance and space. For instance, manufacturers of brands in non-durable product categories are well aware of the fact that their national brands perform very different across domestic U.S. markets. This holds even for product categories with limited product differentiation. In this chapter, we outline various processes through which the influence of geography on performance of national brands materializes. We discuss a number of alternative explanations for the emergence and sustenance of spatial concentration of market shares. Several of these explanations are modeled empirically using data from the United States packaged goods industry. This chapter closes with avenues for further academic research on spatial aspects of the growth of new products.

Details

Geography and Strategy
Type: Book
ISBN: 978-0-76231-034-0

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Article
Publication date: 7 January 2019

Magda Nenycz-Thiel and Jenni Romaniuk

Retailers are increasingly adding banks, gas stations, mobile services and even real estate agencies to their portfolio and branding these new ventures with the retailer…

Abstract

Purpose

Retailers are increasingly adding banks, gas stations, mobile services and even real estate agencies to their portfolio and branding these new ventures with the retailer name, such as Tesco Bank or Asda Money. The purpose of this paper is to test the ability of a retailer brand to stretch from traditional packaged goods categories to very different categories such as banking.

Design/methodology/approach

Using data from an online survey collected from 953 UK grocery buyers, this paper examines consumers’ behaviour towards UK retailer brands across four categories: soft drinks, chocolate, fuel and banking.

Findings

The results show that cross-category retailer brand purchasing is stronger between categories with similar buying behaviour (e.g. soft drinks and chocolate) than in categories with very different buying behaviour (e.g. soft drinks and banking). The behavioural spill over effects are stronger for retailer brands from the same chain and persist even for unrelated categories. However, apart from fuel, the strongest cross-purchasing occurs across competing retailer-branded offers within the same category.

Research limitations/implications

The main implication of this study is that behavioural spill overs for retailer brands are possible even between unrelated categories. The finding about the effects being strongest within a given chain implies that umbrella branded strategy is a key to take advantage of the effects.

Practical implications

These findings extend past literature about the cross-category buying of umbrella branded store brands to very different categories. This paper highlights the challenges retailers face regarding their ability to extend the retailer brand across categories. The findings also provide insights for cross-selling retailer brands in unrelated categories to current store brand buyers.

Originality/value

This is the first study to examine the use of retailer brands across a wide spectrum of categories from Soft Drinks to Fuel.

Details

European Journal of Marketing, vol. 53 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 1 April 1985

George S. Yip

Managers need neither swallow whole an elaborate strategic planning system, nor be discouraged into total rejection. Many of the problems businesses experience with…

Abstract

Managers need neither swallow whole an elaborate strategic planning system, nor be discouraged into total rejection. Many of the problems businesses experience with strategic planning can be traced to a mismatch of their planning system and their companies' structure. This article presents a framework for conducting an audit of a company's structural need for strategic planning.

Details

Journal of Business Strategy, vol. 6 no. 2
Type: Research Article
ISSN: 0275-6668

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