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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: 29 November 2018

Kiran Mahasuar

The distribution channel in Indian Consumer Packaged Goods (CPG) ecosystem is both unique and unparalleled in terms of its reach, structure, and size. This paper aims to…

Abstract

Purpose

The distribution channel in Indian Consumer Packaged Goods (CPG) ecosystem is both unique and unparalleled in terms of its reach, structure, and size. This paper aims to give an emerging market perspective of the innovations in the distribution models of CPG industry through pertinent case studies.

Design/methodology/approach

This briefing is prepared by two independent writers who have critically evaluated the Indian CPG Distribution ecosystem and contextualized the case-studies with their perspectives.

Findings

Most of the text-books and academic literature are tailor-made for the distribution through organized retail. So, how do we tackle the complexities of the Distribution in an emerging market like India with a gargantuan proportion of sales in the unorganized retail sector? The paper is possibly the first attempt to give an emerging market perspective of the successful innovations in the distribution models of CPG industry through pertinent case studies and thereby serve as a learner’s primer in this area.

Practical implications

The paper provides impactful strategic insights and practical thinking derived from the innovative approaches of successful corporations.

Originality/value

The research paper is first of its kind documentation of innovation in CPG ecosystem of India and thus saves busy executives and researchers hours of reading time. The relevant information is presented in a succinct and easy to digest no-frills format.

Details

Strategic Direction, vol. 35 no. 1
Type: Research Article
ISSN: 0258-0543

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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: 24 July 2007

H.S. Noorani and M.B. Kodandarama Setty

The paper attempts to provide a structured process for consumer packaged goods (CPG) companies which wish to implement sales portals in their organizations.

Abstract

Purpose

The paper attempts to provide a structured process for consumer packaged goods (CPG) companies which wish to implement sales portals in their organizations.

Design/methodology/approach

The approach to the framework is largely derived from the authors' experience with CPG companies. It also involves reference to some secondary information. The paper also presents an example of a case study to validate the benefits of a structured approach to sales portal implementation.

Findings

The paper throws light on why CPG companies fail to implement sales portals and prescribes a three‐step approach to streamline the implementation process.

Practical implications

The paper presents a ready guide on what needs to be considered while implementing a sales portal across different channel partners.

Originality/value

The paper is an original work based on rich experience in the CPG field and provides a simple method for companies planning to implement sales portals.

Details

International Journal of Retail & Distribution Management, vol. 35 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

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Article
Publication date: 11 May 2012

Deryck J. van Rensburg

This paper aims to outline a corporate entrepreneurship growth strategy for large consumer packaged goods (CPG) firms that involves venturing with brand entrepreneurs to

Abstract

Purpose

This paper aims to outline a corporate entrepreneurship growth strategy for large consumer packaged goods (CPG) firms that involves venturing with brand entrepreneurs to access innovative or disruptive new brands called “strategic brand venturing” (SBV).

Design/methodology/approach

An emerging development among large CPG firms known for their branding and marketing prowess has been to create dedicated brand/consumer venturing units (e.g. Coca‐Cola; P&G; Nestle; Clorox; General Mills; Unilever) as a means of enlarging their innovation boundaries. As president of an SBV unit for The Coca‐Cola Company, the author notes this recent development and opportunity. He provides a descriptive account of its nature, strategic value, and organizational considerations.

Research implications

Researchers are encouraged to empirically examine this new option in further depth.

Practical implications

The capabilities and organizational considerations involved in establishing an SBV unit are briefly outlined.

Originality/value

External corporate venturing in technology‐intensive industries is an established and growing practice. However, equity investments by large CPG corporations in entrepreneurial brand firms represent a corporate entrepreneurship opportunity that has hitherto received scant/no attention in the literature. A revised typology of brand growth strategies is therefore proposed encompassing venturing.

Details

Journal of Business Strategy, vol. 33 no. 3
Type: Research Article
ISSN: 0275-6668

Keywords

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Article
Publication date: 1 February 2013

Deryck J. van Rensburg

The purpose of this paper is to outline a growth strategy and a conceptual model for large consumer packaged goods (CPG) firms that involves venturing with brand…

Abstract

Purpose

The purpose of this paper is to outline a growth strategy and a conceptual model for large consumer packaged goods (CPG) firms that involves venturing with brand entrepreneurs to access innovative or disruptive new brands called “strategic brand venturing” (SBV). It aims to ground the model conceptually using the intersection of three domains: entrepreneurship, strategic management, and marketing.

Design/methodology/approach

An emerging development among large CPG firms known for their branding and marketing prowess has been to create dedicated brand/consumer venturing units (e.g. Coca‐Cola, P&G, Nestle, Clorox, General Mills, Unilever) as a means of creating new growth horizons. The paper notes this recent development and opportunity. It offers a conceptual explanation of how to think about this using domain intersection literature and a practice‐based description of the dimensions involved in executing such a strategy.

Findings

The paper is conceptual and practice‐oriented. No fieldwork was conducted. However, the work is based on industry practice and a longitudinal participant observation within a Fortune 100 firm over a five‐year period.

Research limitations/implications

Researchers are encouraged to empirically examine this new option in further depth.

Practical implications

The capability dimensions needed to execute are outlined.

Originality/value

External corporate venturing in technology‐intensive industries is an established and growing practice. However, equity investments by large CPG corporations in entrepreneurial brand firms represents a corporate entrepreneurship opportunity that has hitherto received scant/no attention in the literature. A conceptual model is proposed based on industry practice but grounded in a novel use of domain intersection literature to encourage further action and research.

Details

Management Decision, vol. 51 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 11 July 2008

Matthew A. Waller, Andrea Heintz Tangari and Brent D. Williams

The purpose of this study is to investigate the impact of a key logistics and distribution variable, case pack quantity, on a consumer packaged goods (CPG) manufacturing…

Abstract

Purpose

The purpose of this study is to investigate the impact of a key logistics and distribution variable, case pack quantity, on a consumer packaged goods (CPG) manufacturing firm's performance. The paper builds theory with respect to case pack quantity's dichotomous impact on the retail shelf replenishment process and subsequent impact on market share depending on product rate‐of‐sale (ROS).

Design/methodology/approach

The study empirically tests the case pack quantity phenomenon using monthly in‐store data collected over a two year time period, market share data and data provided by a leading US CPG manufacturer in the ready‐to‐eat cereal category. Regression analysis is used to determine if case pack quantity significantly impacts firm market share.

Findings

According to compelling theoretical and empirical evidence, the number of units per retail shipping container (case pack quantity) has a significant impact on retail market share. The evidence indicates that the effect of case pack quantity on market share depends upon the ROS of a given stock‐keeping unit (SKU). For faster selling SKUs, larger case packs should increase market share. For slower selling SKUs, larger case pack quantities reduce market share because of additional stockouts at the retail level, resulting from execution problems caused by the larger case pack quantities.

Practical implications

Given the study's findings, CPG manufacturing firms must align case pack quantities with SKU ROS to positively affect the shelf replenishment process.

Originality/value

The paper demonstrates that case pack quality has a significant impact on retail market share.

Details

International Journal of Physical Distribution & Logistics Management, vol. 38 no. 6
Type: Research Article
ISSN: 0960-0035

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: 19 June 2009

Sander de Leeuw and Jan Fransoo

The purpose of this paper is to investigate the antecedents of close supply chain collaboration and to develop a multi‐variable conceptual model of factors that drive the…

Abstract

Purpose

The purpose of this paper is to investigate the antecedents of close supply chain collaboration and to develop a multi‐variable conceptual model of factors that drive the need for close supply chain collaboration.

Design/methodology/approach

A multi‐variable conceptual model is developed based on literature and on a series of dyadic mini‐cases in the electronics, fashion and consumerpackaged goods industry.

Findings

This paper confirms that close supply chain collaboration is influenced by a multitude of factors. It reveals a need to integrate findings from analytical and empirical disciplines that study supply chain collaboration. The results suggest that collaborative initiatives are predominantly initiated with suppliers and not with customers, and that close supply chain collaboration may lead to inertia in business relations.

Research limitations/implications

This paper is based on dyadic case studies in three different make‐to‐stock industries; future research may include a large‐scale survey in more industries, including both make‐to‐order and make‐to‐stock environments.

Practical implications

Based on the findings, firms can make better choices in their collaborative initiatives; based on the conceptual model, firms can identify potential areas of close supply chain collaboration.

Originality/value

Findings from analytical and empirical literature are combined and such a combined perspective is deployed for the first time into a conceptual model of drivers of close supply chain collaboration.

Details

International Journal of Operations & Production Management, vol. 29 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

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Article
Publication date: 1 May 1995

Martin Fojt

The key to any successful organization must be its communication network. Bold statement, but is it true? It is, of course, a sweeping generalization and one with which…

Abstract

The key to any successful organization must be its communication network. Bold statement, but is it true? It is, of course, a sweeping generalization and one with which anyone would have difficulty in picking an argument. One way to determine what is, and what is not, vital to your organization is by eliminating it from the equation and asking yourself where you would be without it. Do away with your communication system, apart from the most basic, and see what you are left with? If the answer is not a great deal, then you can, it is hoped, appreciate the importance of what you have, and realize the attention it deserves. Taking things for granted is an all too common phenomenon.

Details

Logistics Information Management, vol. 8 no. 5
Type: Research Article
ISSN: 0957-6053

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