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Article
Publication date: 29 June 2018

Ismail Abushaikha

The purpose of this paper is to explore why and how firms with logistics-intensive operations such as fast-moving consumer good (FMCG) distributors benefit from residing…

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Abstract

Purpose

The purpose of this paper is to explore why and how firms with logistics-intensive operations such as fast-moving consumer good (FMCG) distributors benefit from residing in logistics clusters. In particular, this study seeks to fill a gap in the understanding of how logistics clustering may influence FMCG firms’ distribution capabilities.

Design/methodology/approach

Three case studies of FMCG distributors geographically agglomerated within Q Logistics Cluster in Jordan serve to elaborate the existing theory of clustering. Data were collected from 24 interviews as well as observational evidence of the FMCG distributors’ outbound logistics operations. The unit of analysis was the interaction between FMCG distributors and other agents in the logistics cluster.

Findings

FMCG distributors tend to gravitate to clusters where logistics service providers and other FMCG firms co-locate. FMCG distributors interact intensively and benefit greatly from building ties with non-competitor distributors in a cluster. Informal personal relations, collaborative activities and knowledge sharing, learning opportunities and resource availability were found to act as mechanisms for generating distribution capabilities within a logistics cluster.

Practical implications

This study provides practical implications for FMCG logistics and distribution managers who make distribution centre (DC) location decisions. The study provides such managers and their firms with a deeper understanding of the importance of co-locating DCs in logistics clusters, and may help them in designing their supply networks.

Originality/value

This is the first scholarly work to uncover the various ways in which FMCG distributors benefit from logistics clustering and explain why they may differ in performance, building on observations of their capabilities. The study provides insight from an emerging market and encourages future researchers to conduct further studies on logistics clustering in order to bring relevant theory forward.

Details

International Journal of Retail & Distribution Management, vol. 46 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

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Article
Publication date: 22 February 2013

Bikram Jit Singh Mann and Mandeep Kaur

The paper aims to analyze and compare the branding strategies used in the three sectors namely FMCG, services and durables.

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13407

Abstract

Purpose

The paper aims to analyze and compare the branding strategies used in the three sectors namely FMCG, services and durables.

Design/methodology/approach

Based on the literature review, a more comprehensive list of branding strategies is proposed. A content analysis of 600 randomly selected brands, 200 from each sector, is performed. The branding strategies used in the three sectors are explained and MANOVA is conducted to test the hypotheses about differences in the branding strategies across the three sectors.

Findings

The results reveal that the branding strategies vary across the three sectors. Single corporate brand strategy is predominantly used for durables and credence services. On the other hand, in case of FMCG and experience services, individual brand type endorsed by the corporate brand type is the most frequently used branding strategy. Thus, there is a trend towards corporate branding as corporate brand type is popular in all the sectors. Also, other than the single corporate brand strategy, as in case of durables and credence services, single brand type strategy is rarely used. For FMCG brands and experience services brands, companies are trying to leverage brand equity of two or more brand types.

Practical implications

The paper offers insights for designing branding strategies when branding a product/service. Brand managers may rely on corporate brand type when risk associated with a purchase is high, as in case of durables and credence services. However, when the risk associated is low, as in case of FMCG and experience services, individual brand type may be preferred, but at the same time, it should be endorsed by corporate brand type.

Originality/value

This study adds value to the growing body of literature on branding strategies by identifying a more comprehensive and simplistic list of branding strategies which is a major contribution of the paper. Further, this is one of a very few empirical studies on branding strategies and is a pioneering attempt to evaluate the branding strategies in the FMCG vis‐à‐vis services vis‐à‐vis durables sectors. It empirically substantiates that the three sectors are heterogeneous among themselves and homogeneous within themselves with respect to their branding strategies.

Details

Journal of Product & Brand Management, vol. 22 no. 1
Type: Research Article
ISSN: 1061-0421

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Case study
Publication date: 7 February 2019

Peter Moran, Daniel Han Ming Chng and Liman Zhao

Following are the learning outcomes: to understand how the tools and frameworks of strategic analysis can be applied to understand the evolution of value creation and…

Abstract

Learning outcomes

Following are the learning outcomes: to understand how the tools and frameworks of strategic analysis can be applied to understand the evolution of value creation and capture in the FMCG industry; to analyze the core competencies of a company and understand their relevance in this fast-changing industry; to understand how to evaluate the pros and cons of a certain strategy and business model; and to develop strategic recommendations.

Case overview/synopsis

The case series traces the developments in China’s FMCG industry from the early 2010s to 2017, in general, and the efforts of Beijing WinChannel Software Technology Co., Ltd. (WinChannel) and its affiliated company, Huixiadan, in their attempt to apply new digital technologies to transform the traditional trade channel, in particular. The decision point of Case A, in early 2015, is how WinChannel can help improve the reach and efficiency of the traditional trade channel and wonders if the emerging online/mobile B2B FMCG platforms are the right solution for the increasingly digitized FMCG retail industry in China. The decision point of Case B, at the end of 2017, is how could Huixiadan’s business model be sustainable and what it should do to withstand the competitive threats even as it tries to exploit opportunities in the traditional FMCG industry in China.

Complexity academic level

It can be used with MBAs, EMBAs and senior executives.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS: 11: Strategy.

Details

Emerald Emerging Markets Case Studies, vol. 9 no. 1
Type: Case Study
ISSN: 2045-0621

Keywords

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Article
Publication date: 7 February 2020

Raksha R. Deshbhag and Bijuna C. Mohan

The purpose of this study is to determine the influence of celebrity credibility (trustworthiness, attractiveness and expertise) on risk perception and buying intention of…

Abstract

Purpose

The purpose of this study is to determine the influence of celebrity credibility (trustworthiness, attractiveness and expertise) on risk perception and buying intention of Indian fast moving consumer goods (FMCG) consumers.

Design/methodology/approach

The present study adopted the survey method to know the influence of celebrity credibility dimensions on the perceived risk and purchase intentions of Indian FMCG consumers. This study has performed a survey on 250 respondents using the self-administered questionnaire consisting of 18 measurement scales.

Findings

The major findings of this study indicate celebrity trust and celebrity expertise are the most important dimensions of celebrity to influence the risk perceptions of Indian FMCG consumers. The risk perceptions positively influence the purchase intentions of Indian FMCG consumers.

Research limitations/implications

This study was limited to the Indian context, but theoretical contributions in terms of justifying the relationship linking variables, which might affect success, as well as the failure of celebrity endorsements.

Practical implications

The research findings can assist the practitioners in selecting the right celebrity endorser as a spokesperson for promoting Indian FMCG brands based on three dimensions of celebrity credibility (trust, expertise and attractiveness).

Originality/value

The study has proposed and tested the new theoretical model considering the celebrity trust, celebrity expertise and celebrity attractiveness as the affective responses from the buyers of FMCG. Perceived risk is mainly cognitive responses influenced through celebrity credible sources. The study attempted to investigate the impact of both affective and cognitive responses on the purchase intentions of Indian FMCG consumers.

Details

Journal of Indian Business Research, vol. 12 no. 1
Type: Research Article
ISSN: 1755-4195

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Article
Publication date: 23 July 2021

Naser Valaei, Sajad Rezaei, Gregory Bressolles and Michael M. Dent

A total of 210 valid paper-and-pencil questionnaires were received from fast-moving consumer goods/small and medium-sized enterprises (FMCG-SMEs) to empirically test the…

Abstract

Purpose

A total of 210 valid paper-and-pencil questionnaires were received from fast-moving consumer goods/small and medium-sized enterprises (FMCG-SMEs) to empirically test the proposed model. Structural equation modelling approach was performed to assess the model fit, measurement and structural models for exogenous and endogenous constructs, and test of nonlinearity.

Design/methodology/approach

In the hyper-competitive world, while the essence of strategy making is often focussed on environmental and market-based analysis or the structure of the market, the important role of resources and capabilities in determining firm performance and overall strategy formulation within SMEs begs attention. Grounded in the resource-based view (RBV) of the firm, organisational improvisation theory and componential theory of creativity, the purpose of this research is to look beyond the determinants of creativity, innovation and proposes a theoretical model investigating organisations formative performance in strategy formulation.

Findings

The results imply that intrinsic motivation, extrinsic motivation, creativity-related processes and expertise as the firm's capabilities positively influence improvisational creativity, and creativity-related processes and expertise also positively impact on compositional creativity. Surprisingly, intrinsic and extrinsic motivations are not conducive to compositional creativity, and the relationships between extrinsic motivation and improvisational creativity as well as improvisational creativity and performance are nonlinear. Furthermore, both improvisational creativity and compositional creativity are found to be predictors of innovation in FMCG-SMEs.

Practical implications

Thus, organisations and specifically FMCG-SMEs can increase the level of improvisational creativity if they formulate strategies to motivate employees both intrinsically and extrinsically, and further, they can boost the level of compositional creativity in their companies through hiring and nurturing experts.

Originality/value

Less attention has been paid to motivation, creativity, innovation, performance and strategy linkages as the prominent source of competitive advantages among FMCG-SMEs, especially in developing countries. Theoretically, through introducing extrinsic motivation as the predictors of improvisational creativity and innovation, from strategic management perspectives, the empirical findings of this research illustrate that resources and capabilities (RBV) lead to improved competitive performance within the FMCG-SMEs. This study also provides empirical evidence for the nonlinear nature of the relationship between motivation and creativity.

Details

Asia-Pacific Journal of Business Administration, vol. 14 no. 1
Type: Research Article
ISSN: 1757-4323

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Article
Publication date: 16 August 2013

Kavita Srivastava and Narendra K. Sharma

The present study aims to investigate the impact of perceived quality, brand extension incongruity, involvement and perceived risk on consumer attitude towards brand…

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3069

Abstract

Purpose

The present study aims to investigate the impact of perceived quality, brand extension incongruity, involvement and perceived risk on consumer attitude towards brand extension across three product types, namely, FMCG, durable goods and service (FDS) sectors. More importantly, the study seeks to explore the importance of involvement profile comprising relevance, pleasure, sign‐value, risk importance and risk probability and perceived risk facets (financial, psychological and performance) in acceptance of brand extension across FDS.

Design/methodology/approach

Three questionnaire‐based surveys were conducted to collect the data for FMCG, durable and service brand extensions. Regression analyses and Chow test were computed to investigate differences in consumer evaluation across FDS.

Findings

Results revealed significant different effects of variables across the three product types. The impact of perceived quality was greater in the case of services than FMCG and durables. On the other hand, perceived risk and involvement had stronger influence on evaluation of durables and service than FMCG brand extensions.

Research limitations/implications

The present study gives a comprehensive view of how consumers evaluate the service and non‐service brand extensions.

Originality/value

The major contributions of this study are: generalization of the findings related to brand extension incongruity in the service area; examination of the multidimensional role of involvement in terms of relevance, pleasure, sign value, risk importance and risk probability in brand extension context across FMCG, durables and service product types; and exploration of the role of risk facets, namely, financial, performance and psychological in determining consumers' attitude towards brand extension.

Details

Journal of Indian Business Research, vol. 5 no. 3
Type: Research Article
ISSN: 1755-4195

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Article
Publication date: 8 May 2017

Lina Pileliene and Viktorija Grigaliunaite

The purpose of this paper is to develop guidelines for the selection of a female advertising spokesperson and brand position regarding the selected spokesperson in the…

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3190

Abstract

Purpose

The purpose of this paper is to develop guidelines for the selection of a female advertising spokesperson and brand position regarding the selected spokesperson in the context of fast-moving consumer goods (FMCG) advertising.

Design/methodology/approach

The paper presents findings using both neuromarketing and traditional marketing research methods.

Findings

The findings are based on the results of P300 event-related brain potentials, eye-tracking experiments and a questionnaire research. It was concluded that a famous female spokesperson indeed has a significant effect on FMCG advertising effectiveness.

Practical implications

The selection of a female celebrity spokesperson when seeking FMCG advertising effectiveness depends on the primary determined aim of marketing communication. If the aim of the advertising campaign is to form attitude, then selecting a celebrity as the FMCG advertising spokesperson is recommended, but if the aim of the FMCG advertising campaign is to enhance brand awareness, it is recommended to select a non-celebrity spokesperson. Furthermore, the brand should be presented at the top of the advertisement’s layout, particularly when a celebrity is chosen as a spokesperson because this allows lowering the possibility of the “vampire effect” occurrence.

Originality/value

As a study on the effect of a female spokesperson on FMCG advertising effectiveness, this research will be of academic interest, integrating both marketing theory and neuroscience to analyze and evaluate consumer behavior. This research is also relevant to businesses, because it provides guidelines for the selection of female advertising spokespersons in the context of FMCG advertising.

Details

Journal of Consumer Marketing, vol. 34 no. 3
Type: Research Article
ISSN: 0736-3761

Keywords

Open Access
Article
Publication date: 17 May 2021

Alessandro Creazza, Claudia Colicchia, Salvatore Spiezia and Fabrizio Dallari

The purpose of this paper is to explore the perceptions of supply chain managers regarding the elements that make up cyber supply chain risk management (CSCRM) and the…

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2039

Abstract

Purpose

The purpose of this paper is to explore the perceptions of supply chain managers regarding the elements that make up cyber supply chain risk management (CSCRM) and the related level of alignment, to understand how organizations can deploy a CSCRM strategy that goes beyond the technical, internal functioning of single companies and moves beyond the dyad, to create a better alignment that can ultimately lead to improved cyber supply chain resilience.

Design/methodology/approach

An exploratory survey in the fast-moving consumer goods (FMCG) industry involving over 100 organizations in Italy was conducted. Results were analysed through one-way analysis of variance, to appraise the differences in the perceptions of the various actors of the FMCG supply chain (Manufacturers, Logistics Service Providers, Retailers).

Findings

While a certain degree of alignment of the perceptions across the FMCG supply chain exists, the study found that Logistics Service Providers can play a crucial role as orchestrators of the CSCRM process towards a more “supply chain-oriented” response to cyber threats and risk events. The research also highlights the necessity to see people as key elements for improving cyber resilience in the supply chain.

Research limitations/implications

Through a vertical analysis of a supply chain, the study extends the existing theory on CSCRM, which contains isolated case studies. It also contributes to extending the current theory with the proposal of the paradigm of Logistics Service Providers as orchestrators of the CSCRM process. The study combines different classifications of CSCRM initiatives and embraces theories external to the supply chain literature.

Practical implications

Through the empirical analysis, this study helps practitioners in streamlining the design of cyber security strategies and actions that span across the supply chain for better alignment. This could mean more coordination of efforts and more targeted/accurate investments in CSCRM initiatives. The study invites practitioners to ponder the perceived relevance of the human factor as a source of risk and the perceived importance of countermeasures aimed at mitigating risk events stemming from that source.

Originality/value

By focusing on an entire supply chain, this is one of the first studies on CSCRM that goes beyond the dyad. Its originality also lies in its use of the investigations of perceptions along the supply chain as pillars for the alignment of CSCRM strategies and mitigation initiatives. This original perspective allows for discovering the role of Logistics Service Providers in driving the alignment of the efforts towards better outcomes of the CSCRM process.

Details

Supply Chain Management: An International Journal, vol. 27 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Abstract

Subject area

Strategy.

Study level/applicability

MBA.

Case overview

On 20 May 2016, the Management team at Patanjali Ayurved Limited (PAL), an Indian fast-moving consumer goods (FMCG) company, had assembled in their Haridwar office, India, to discuss their future growth plans. The team was in a celebratory mood, as their internal reports suggested the annual revenue forecasts for the year 2016-2017 to be INR 10bn, an increase of 100 per cent as compared to the previous fiscal year 2015-2016 that recorded annual revenues of INR 5bn. PAL incorporated in 2006 and co-founded by Acharya Balkrishna operated in four business segments of foods, personal care, home care and Ayurved products. The products sold under the brand name Patanjali were single-handedly promoted by Swami Ramdev (hereafter referred as Ramdev), a popular Yoga practitioner and preacher amongst the Indian masses, as well as PAL’s co-founder. Ramdev recommended PAL’s products in his yoga sessions on television and yoga shibirs which had led to huge positive “word-of-mouth” publicity for their brand Patanjali. Their fast-paced growth in less than a decade had generated a disruption in the Indian FMCG sector, resulting in a negative impact on the sales of established multinational corporations (MNCs) such as Colgate-Palmolive, Hindustan Unilever Limited (HUL), ITC Limited (ITC), besides the domestic players such as Dabur India Ltd. and Emami Ltd. This had led their FMCG competitors to launch plans to strengthen their product portfolios so as to provide a tough competition to PAL. The management team at PAL, though confident of achieving their annual revenue targets, were apprehensive of this new competition from the big players of the FMCG sector. Were they capable of continuing their success story? Going forward what strategic steps would ensure them a sustainable growth and a market leader position? The mood turned reflective as the team pondered on some of these questions.

Expected learning outcomes

The case is structured to enable discussion on: conducting and understanding a general environment analysis and industry and competitive analysis and critically evaluating the firm’s strategic positioning and scope in a competitive environment.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS 11: Strategy.

Details

Emerald Emerging Markets Case Studies, vol. 7 no. 2
Type: Case Study
ISSN: 2045-0621

Keywords

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Article
Publication date: 27 April 2010

Asad Aman and Gillian Hopkinson

The purpose of this paper is to consider the impact of the entry of international wholesalers upon existing fast moving consumer goods (FMCG) channel structures and the…

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3467

Abstract

Purpose

The purpose of this paper is to consider the impact of the entry of international wholesalers upon existing fast moving consumer goods (FMCG) channel structures and the relationships between channel members in Pakistan.

Design/methodology/approach

The paper draws on primary and secondary data. Industrial and published sources are used to describe the retail industry and traditional channel structures in Pakistan. Semi‐structured interviews with industry experts and channel participants (manufacturers, distributors, local and organised wholesalers and retailers) over the period illustrate the perspectives of different channel members.

Findings

Although currently holding small market share, the entry and growth of international, consolidated wholesale has opened alternative channel structures. This poses a threat to some channel members and creates relationships that alter the distribution of power in the channel. In this fluid situation, there is the possibility of substantial change in Pakistan's FMCG retail.

Research limitations/implications

The nature of the Pakistan retail market creates difficulties in compiling statistics or generalising from observations. The paper uses published statistics, industry reports and interviews to nevertheless be able to comment on this important market.

Originality/value

The paper looks at an under‐researched market and comments upon the first steps in that market towards consolidation and internationalisation. In looking at the reactions of extant market players to this recent development, the paper provides useful insight and guidance to those (manufacturers, retailers and analysts) interested in retail in Pakistan.

Details

International Journal of Retail & Distribution Management, vol. 38 no. 5
Type: Research Article
ISSN: 0959-0552

Keywords

1 – 10 of over 1000