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Article
Publication date: 29 April 2022

Anupama Prashar

: Sustainability in fast-moving consumer goods (FMCG) supply chains (SC) is receiving greater than ever attention due to the increasing awareness of sustainability challenges such…

1342

Abstract

Purpose

: Sustainability in fast-moving consumer goods (FMCG) supply chains (SC) is receiving greater than ever attention due to the increasing awareness of sustainability challenges such as climate change and labor rights. A definite solution is to integrate sustainable supply chain management (SSCM) practices all through the upstream and downstream entities of SC. This study identified and compared the drivers for the implementation of SSCM practices in Indian FMCG sector.

Design/methodology/approach

A methodology based on Grey-Decision Making Trial and Evaluation Laboratory (DEMATEL), a hybrid multiple-criteria decision making (MCDM) technique and sensitivity analysis was used to envisage the complex causal relationships among the identified SSCM drivers and to identify the critical ones.

Findings

The results showed that regulatory and legislative pressure, competition pressure and innovativeness dominantly drive the implementation of SSCM practices in the upstream and downstream SC of the FMCG sector.

Originality/value

The study examined levers of sustainability in FMCG supply chains in an emerging market with most of the extant research limited to automotive and electronic supply chains.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 8
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 28 February 2023

Sunita Guru, Subir Verma, Pratibha Baheti and Vishal Dagar

The successive waves of the Covid-19 SARS-II pandemic and the attendant lockdown imposed by the governments worldwide drove the economic activities to a halt. Offices and…

Abstract

Purpose

The successive waves of the Covid-19 SARS-II pandemic and the attendant lockdown imposed by the governments worldwide drove the economic activities to a halt. Offices and factories closed, production of goods and services declined and supply chains got severely disrupted. Many companies were embattled with the grim reality of shrinkage of aggregate demand, first due to supply shock and later due to loss of jobs and wages. Amidst all this, the handling and shipping of commodities became extremely complex. As the pandemic shifted consumer preference in favour of digital platforms, more and more fast-moving consumer goods (FMCG) companies were confronted with multiple strategies and choices of an appropriate distribution channel to ensure smooth delivery of raw materials and products. The present study aims to study this shift and its implications in the Indian context.

Design/methodology/approach

A mix-method approach, integrating quantitative and qualitative analysis, is employed to investigate the factors influencing the selection of distribution channels amongst general trade, modern trade, e-commerce and hyperlocal for FMCG companies in India. The first phase of the study uses exploratory factor analysis (EFA), followed by the application of analytical hierarchy process (AHP) approach in a fuzzy environment to realise the priority weights and ranking of the identified factors. Finally, sensitivity analysis is performed to confirm the robustness of the fuzzy analytical hierarchy process (FAHP) outcomes.

Findings

The study revealed that modern trade has emerged as the most favoured channel in the post-pandemic Indian economy. It has the potential to disrupt general trade. The study also revealed that the hyperlocal delivery model is not economically viable, and the partnership of FMCG companies with these applications is at best a short-term solution. However, it must be submitted that due to its sheer capability to ensure quick deliveries within a confined geographic area, hyperlocal delivery will gain momentum with the advancement of technology.

Originality/value

This study can be seen as the first attempt to investigate the issues related to the selection of the distribution channels in the FMCG sector of India using multi-criteria decision-making technique (MCDM).

Details

Management Decision, vol. 61 no. 6
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 26 September 2023

Damien Wilson, Maxwell Winchester and Michael S. Visser

This study aims to understand the degree of predictability and value in analyzing consumer purchase patterns in the US wine retail market. The study considers whether brands in US…

Abstract

Purpose

This study aims to understand the degree of predictability and value in analyzing consumer purchase patterns in the US wine retail market. The study considers whether brands in US wine retailing follow the well-established Duplication of Purchase Law and Double Jeopardy Law.

Design/methodology/approach

Over 20,000 customer panel wine purchases were analyzed from a number of locations within a supermarket chain based on the West Coast of the USA. Cross-purchasing behavior for the top 20 wine brands by market penetration was analyzed to assess whether the well-established Duplication of Purchase Law and Double Jeopardy Law hold up in this wine retail setting in the USA. The degree of predictability and the existence of anomalies in expected cross-purchasing behavior were identified in the analysis.

Findings

Results confirmed a Double Jeopardy pattern and that wine cross-purchasing patterns for the most part followed the Duplication of Purchase Law. However, exceptions to these patterns were found, which indicated areas in need of managerial attention due to the potential to remedy, develop or monitor the most prominent variations between predicted and realized cross-purchasing behavior. Repeated identification of variations has been identified in other product categories, known as market partitions.

Originality/value

Although it is commonly believed that wine is a unique product category, the results of this study demonstrate that consumer behavior toward wine is similar to other fast-moving consumer goods. The exceptions suggest that while similar consumer purchase patterns are evident, consumers are more likely to cross purchase wine brands and grape types more than would be expected given Duplication of Purchase Law benchmarks.

Details

International Journal of Wine Business Research, vol. 35 no. 4
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 18 April 2023

Hsuan-Hsuan Ku and Yun-Hsuan Hsu

Capturing consumers’ notice by differentiating a product from competing brands in attaching an affixed label featuring product claims, as an alternative front-of-package (FOP…

Abstract

Purpose

Capturing consumers’ notice by differentiating a product from competing brands in attaching an affixed label featuring product claims, as an alternative front-of-package (FOP) cue, has been widely used in fast-moving consumer goods retailing. This paper aims to apply perceived product newness as the basis for examining how affixed labeling, manipulated in terms of design features and message claims, can impact consumer evaluation.

Design/methodology/approach

Four between-subjects experiments examined the persuasive impact of the use of affixed labels. In particular, how product evaluation, in response to affixed labeling, varied as a function of its shape (Study 1a), location (Study 1b), the combination of shape and location cues (Study 1c) and the strength of message claims conveyed by such labels (Study 2). Perceived product newness is assessed as a mediator for all studies.

Findings

The results show the power of affixed labels in persuasion. Specifically, consumers tend to perceive the item as newer, achieving persuasion, when the affixed label has a distinctive shape or location. Yet, incorporating several unusual design components fails to trigger an elevated result if a singular visual stimulus serves as a cue for an item’s newness. Further, the strength of claims highlighted in an affixed label correlates to positive impact on evaluations.

Research limitations/implications

This study offers an empirically based examination of consumers’ responses to affixed labeling and identifies perceived product newness as a mediator of the observed effect.

Practical implications

A salient, affixed label enables a credible cue for product newness, therefore, driving evaluation.

Originality/value

This paper contributes to understanding the influence on the persuasion of FOP labeling, with salience to retail promotional and sales messaging tactics.

Details

European Journal of Marketing, vol. 57 no. 8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 7 June 2022

Hicham Drissi, Hicham Lamzaouek, Issam Amellal and Karima Mialed

To understand the specificities of Cash-flow bullwhip in the context of major crises similar to that of COVID-19, to identify its financial impacts on the Moroccan FMCG companies…

Abstract

Purpose

To understand the specificities of Cash-flow bullwhip in the context of major crises similar to that of COVID-19, to identify its financial impacts on the Moroccan FMCG companies, to establish the profile of the companies most affected by this CFB and finally to propose internal control mechanisms that should be put in place to mitigate the effects of Cash flow Bullwhip in such a context.

Design/methodology/approach

The authors chose to conduct descriptive research on companies operating in the fast-moving consumer goods sector in Morocco. For this purpose, a survey was conducted on a target population during the period from December 2020 to March 2021. To answer the different research questions, a multiple correspondence analysis (MCA) has been conducted on the 21 variables obtained from the survey questions.

Findings

Small and medium-sized companies are those that have been the most financially impacted. Indeed, the instability of the cash flow conversion cycle increased their working capital requirements and limited their self-financing capacity. To face this situation, those companies used alternative means to finance their operational activity by using their equities or bank loans.

Originality/value

Due to the originality of the COVID 19 context, this study gives a different angle of view to analyze the cash flow bullwhip and its implications on the financial health of companies.

Details

EuroMed Journal of Business, vol. 18 no. 4
Type: Research Article
ISSN: 1450-2194

Keywords

Open Access
Article
Publication date: 16 May 2023

Noora Arantola and Mari Juntunen

This study aims to increase the understanding of the emergence of a values-based (VB) premium private label (PL) brand reputation within a multiple-tier PL brand portfolio in…

23814

Abstract

Purpose

This study aims to increase the understanding of the emergence of a values-based (VB) premium private label (PL) brand reputation within a multiple-tier PL brand portfolio in retailing.

Design/methodology/approach

By building on the research on PLs, brand image, brand reputation and consumer values, this study creates a conceptual foundation for the emergence of VB PL brand reputation within a multiple-tier brand portfolio among consumers and examines the emergence of such reputation empirically using interpretive exploratory qualitative laddering interviews in the context of fast-moving consumer goods.

Findings

The findings of this study illustrate that the VB reputations of the premium PL product brand and the PL brand store intertwine, ultimately relating to two terminal values: pleasure and doing good. These reputations differ remarkably from the VB reputations of the economy PL brand and the umbrella brand of the retail chain (not doing good and financial security).

Research limitations/implications

This study explains the emergence of VB brand reputation within a multiple-tier brand portfolio and introduces the use of the laddering technique in such research.

Practical implications

This study reminds brand managers to carefully design the relevant brand strategy for brands and their relationships under a brand umbrella.

Originality/value

Although much is known about PL brands and brand reputation, to the best of the authors’ knowledge, this study might be the first to increase the understanding of how a VB premium PL brand reputation emerges and accumulates from brand images within a multiple-tier brand portfolio.

Details

Journal of Product & Brand Management, vol. 32 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 2 June 2022

M. Rizwana, Padmalini Singh, N. Ahalya and T. Mohanasundaram

The goal of the present study is to examine the degree of knowledge amongst Indian women about millet grain and its nutritional advantages. Millet is regarded to be five times…

Abstract

Purpose

The goal of the present study is to examine the degree of knowledge amongst Indian women about millet grain and its nutritional advantages. Millet is regarded to be five times more nutritious than rice and wheat. Despite the fact that millet contributes to 10% of India's food grain basket and has an annual production of 18 million tonnes, it is not consumed in the same proportion as mainstream cereals (that is rice and wheat). As a result, the study's primary objective is to determine the level of awareness and consumption pattern of millet amongst Indian women regarding millet grains.

Design/methodology/approach

The research was carried out in the city of Bengaluru in the state of Karnataka, India. For the purpose of study, a sample of 855 female respondents was approached using a non-probability sampling technique known as convenience sampling. The data were gathered through the use of a self-administered structured questionnaire.

Findings

According to the findings of the study, the vast majority of respondents consume millet for preserving overall health. Building self and family immunity is the most important factor with 4.11 mean scores and low standard deviation of 0.985. The results reveal that 80.6% of women in the study are aware of millet but only 62.7% of women are consuming millet. The motivating factors and demotivating factors leading to consumption and non-consumption behaviour, respectively have also been identified. The study also reveals that demographic factors such as age, qualification and income have a direct influence on millet consumption.

Research limitations/implications

The scope of research can be extended to explore the impact of millet consumption on long term health benefits of millet amongst the target respondents. Further, the study can be extended to explore the consumption pattern of millet among different target audience in various parts of India. The media interventions in creating awareness of millet consumption benefits need to be studied for increasing the consumption of millet.

Practical implications

Companies involved in producing Fast Moving Consumer Goods (FMCG) products can be encouraged to produce millet based foods like cereals, biscuits, ready to eat foods etc. Workshops can be organized to raise awareness on how the millet can replace traditional grains in the cooking process.

Social implications

Policy measures may include millet being promoted through technology dissemination, creating awareness about advantages of millet and including millet in the Public Distribution System (PDS). It is also important to promote the cultivation, maintenance and processing of the local variety of millet with competent marketing strategies so as to increase their cultivation comparable to the cash crops. Farmers should be educated on the importance of cultivation of minor millet.

Originality/value

The fast-paced lifestyle of urban Indians has a direct impact on their dietary preferences. The World Health Organization (WHO) recommends that people have a nutritionally balanced diet and engage in regular physical activity to reduce health risks. In India, as a result of women's increased participation in the workforce, women are forced to manage many tasks and obligations, which has detrimental effects on their health. The poor nutritional status of modern-day workers is attributed to a lack of education, lack of awareness and a general disregard for health-related concerns. There is a need to investigate if Indian women are aware of the nutritional benefits of millet grains that are higher in protein.

Details

British Food Journal, vol. 125 no. 6
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 20 September 2022

Fernando Gimeno-Arias and José Manuel Santos-Jaén

Within the fast-moving consumer goods (FMCG) supply chain, one of the problems facing the distribution channel strategy is the presence of the gray market. The article shows two…

Abstract

Purpose

Within the fast-moving consumer goods (FMCG) supply chain, one of the problems facing the distribution channel strategy is the presence of the gray market. The article shows two novel antecedents of the participation of official distributors in this gray channel: Negative impact on distributor performance and the relationship with their supplier. Knowledge of this background helps to preserve the strategy outlined for the official distribution channel.

Design/methodology/approach

Data were collected from 172 Spanish wholesale distributors and analyzed using PLS-SEM.

Findings

The authors found that the damage through negative affectation in the official distributor's performance and the cooperation provided by the manufacturer, have different effects. While affectation is shown to be a powerful antecedent of participation in the gray market, the effect of perceived manufacturer cooperation does not show strong results.

Practical implications

In business practice, these findings lead the manufacturer to keep transactions carried out in the gray market at low levels and provide cooperation to official distributors to guarantee the official channel strategy aimed at efficiency in the distribution of branded goods.

Originality/value

The background of the gray market discussed in the study has not been previously analyzed in the literature. In this way, the authors contribute to the knowledge of such a common problem as the presence of the gray market in the segmentation of distribution channels of high-demand products.

Details

International Journal of Physical Distribution & Logistics Management, vol. 53 no. 7/8
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 18 August 2022

Meletios I. Niros, Angelica Niros, Yannis Pollalis and Qing Shan Ding

This study proposes marketing strategies for global fast-moving consumer good (FMCG) brands to survive and thrive in the turbulent economic environment created by COVID-19. The…

1510

Abstract

Purpose

This study proposes marketing strategies for global fast-moving consumer good (FMCG) brands to survive and thrive in the turbulent economic environment created by COVID-19. The authors investigate the indirect effects of consumer ethnocentrism (CET) and consumer confidence (CC) on customer equity drivers (CEDs)’ effectiveness in influencing repurchase intention (RI) for global FMCG brands.

Design/methodology/approach

This study uses the mall-intercept technique. Respondents were randomly approached at popular retail and shopping destinations in Athens, Greece, and 228 customer participants completed the survey.

Findings

CET and CC weaken the positive relationship between certain CEDs and RI of FMCG brands. Particularly, the effects of relationship equity (RE) and value equity (VE) on strengthening repeated purchases are higher for low-confidence or low-ethnocentric consumers. Thus, marketing strategies for enhancing value and creating stronger consumer–brand relationships are more effective in boosting repeated purchases during economic turbulence.

Practical implications

Practitioners and academicians can use the insights obtained from this study to determine how to allocate resources and adopt the most effective marketing strategies in local environments based on consumer preference for domestic or global products and consumer morale and expectations for future financial status.

Originality/value

This research unveils the mechanism behind the moderating effects of CET and CC on the effectiveness of CEDs in global FMCG settings using social identity and system justification theory. Turbulence in international and local markets due to the pandemic has revealed that marketing function needs to redesign strategies and coordinate practices to boost repeat purchases.

Details

International Marketing Review, vol. 40 no. 5
Type: Research Article
ISSN: 0265-1335

Keywords

Open Access
Article
Publication date: 10 March 2023

Jyrki Isojärvi and Jaakko Aspara

While most marketing research on organic products refers to the premium price levels of organic products, little research exists on consumers’ behavioural responses to price…

2596

Abstract

Purpose

While most marketing research on organic products refers to the premium price levels of organic products, little research exists on consumers’ behavioural responses to price promotions or discounts of organic products. The present study aims to fill this research gap.

Design/methodology/approach

To develop alternative hypotheses about consumers’ behavioural responses to price promotions of organic fast-moving consumer good (FMCG) products, the authors used the researcher-introspection method in a pre-study. To test the hypotheses developed based on the pre-study, the authors conducted a field experiment on online advertising of an FMCG sold in drugstores. In the field experiment, the authors exposed consumers to an online ad featuring either a price promotion (−20%) or the regular price of the product. The ads also varied in terms of whether they contained explicit organic claims or not, and whether they included implicit organic cues or not.

Findings

The price promotion increased the clickthrough rate of the ad both when combined with an explicit organic claim and when combined with the implicit cue of green product pack. The results suggest that consumers do not have significant suspicions about price promotions of organic products, but rather presume that the price promotion of an organic FMCG product is a periodical promotional action, similar to the price promotions for conventional, non-organic products. Also, consumers seem to assume that the regular prices of organic FMCG products are so high that the retailer/manufacturer can well afford periodic price discounts.

Research limitations/implications

The present research shifts the focus of organic marketing research from the premium price levels to the effectiveness of price promotions and discounts. Further, the present results contrast with certain earlier studies that have questioned the effectiveness of price promotions for organic products.

Practical implications

The results have different implications for marketing managers of brands not yet providing organic product versions in the market, of brands producing non-organic products, which cannot easily be rendered organic, and of brands offering organic products in the market.

Originality/value

This is, to the best of the authors’ knowledge, the first empirical study and field experiment on price promotions of organic products, including explicit organic claims.

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