CAPABILITIES
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FMCG

Introduction

The Fast Moving Consumer Goods (FMCG) industry primarily deals with the production, distribution and marketing of consumer packaged goods, i.e. those categories of products that are consumed at regular intervals. Examples include food & beverage, personal care, pharmaceuticals, plastic goods, paper & stationery and household products etc. The industry is vast and offers a wide range of job opportunities in functions such as sales, supply chain, finance, marketing, operations, purchasing, human resources, product development and general management.

Advantages

Technology Our reporting and management software, accessible from the Internet, collects from the territory and offers real time raports and data necessary for the supervision and improvement of our customer's merchandising, promotion and sales activities. To have the right information at the right time represents the key factor in the success or failure of a sales campaign. Our system provides complete and detailed reports that help us measure progress relative to established objectives. In addition to these reports we also offer our clients market information and data that are essential in creating the marketing mix and the right strategy and tactic for your product. This is why we invested in IT and developing our own software solution, so that we can respond better to the needs of our clients: much faster acces to field data, often real-time ability to customize raports structure and format direct acces to the whole reporting cycle, from the raw data until the final analysis the posibility to create levels of access to the data Flexibility & Carefree We take on board and respond to additions or changes to ongoing projects. Our main aim is to act promptly. Low cost, more value added Rather than getting involved in: the selection & recruitment & of staff, hiring, training, offices rental, opt for our solution where all the infrastructure is already in place. In-depth local knowledge Each FMCG manager has worked within their allocated regions for several years. The local connections and knowledge aquired, combined with the sales, distribution, promotion & merchandising experience make our managerial team unbeatable and making the mantra "Think national, act local" a reality. Reaction speed: Depending on the processed services we can offer various raports for our activities: daily, weekly or monthly, using our own software solution. Guarantee We guarantee the highest performance and quality using an internal evaluation system for both merchandisers and promoters. We can apply changes to a running project without additional costs.


Challenges

The main challenges companies must face up to in the future if they wish to grow sustainably and profitably: The Marketing Challenge. The goals of marketing remain unchanged, but not the way in which these are reached. It is of vital importance to understand that the customer journey and the new ways and opportunities for connecting with the consumer are very different. Companies must make consumers understand the importance of brands and know how to connect with them, using all available channels. Promote and look after new channels. Our obligation is not to "be" present in all of the different channels, rather to develop, incentivize and differentiate them to really achieve incremental sales for our companies. Multichannel Sales Equality. Companies have been working in recent years to understand the sales equality of prices, promotions and discounts offered to their clients. The value chain has become destructured and this requires an exhaustive analysis of the contribution made by each link of the chain. It is necessary to develop a concept of “multichannel sales equality” so a consumer will not perceive incoherence in the price paid for a product depending on the purchase channel or area. Global. The mass-market sector has sustained itself thanks to exports. If a Spanish company truly aspires to grow, all CEOs or business owners of any company must undergo “smart” internationalization. Internationalization is not just exporting. We must understand how consumers behave in the country of origin and what their preferences are to adapt our products, labels, formats, etc. to their demands. Organizational Model. Another major challenge of this period is the development of organizational models from several perspectives: The organization chart itself. Distinguishing between the actual business and the future business. Including younger employees in our organizations will help us better understand the consumer and “impel” the organization in all of its areas. Get everyone accustomed to multinational environments and less hierarchical, more matrix-like organization charts with common, shared goals. Innovation. Innovation ratios have been truly poor in recent years. Despite all of the difficulties, innovation must be a key strategy for any company, we must invest in truly innovative products that entail added value for categories and, especially, for consumers. The perception of innovation should not only focus on the product or format, we must also think about transversal innovation. Efficient management of Prices and Promotions. In markets with stunted growth, optimizing the positioning of prices and promotions by aligning these with their incremental value and with the strategic role you want your brands to play in the market is the main source for increasing the EBIT that may result. Generate Value. The mission of any company of the mass market in Spain is to increase the consumption of food and beverages to thereby enlarge the market. Before competing, we must together generate value for the sector/consumer to make the pie bigger. No doubt, we will experience more changes in the coming decades than in the entire last century, which will result in radical changes for the industry's leading players. The actual ranking of TOP companies in the sector will be nothing like the ranking of winners in the sector in the coming decades. Both new players, digital companies, as well as those that are capable of undergoing transformation, will assume positions in the new leadership of the FMCG and Retail industry in Spain. As an example of this, we merely need to analyze the changes to the ranking of Fortune in the USA over the last century. In any case, I am optimist and firmly believe that we have a sufficiently consolidated and prepared business fabric for facing up to this transformation and lead the sector in its reconversion on an international level.


Key Features

The following are the main characteristics of FMCGs From the consumer perspective Frequent purchases Low engagement (little or no effort to choose the item) Low prices Short shelf life Rapid consumption Price Comparison over online purchase by customer. From the marketer perspective High volumes Low contribution margins Extensive distribution networks High inventory turnover Advantages of FMCG:- Cumulative Profit Low cost, More Value Added Easily Identified in Stores Like Easy Day, Big Bazaar, etc. Flexible Product Means done changes According to the need of customer Disadvantages of FMCG High Competition High Inventory require Low Profit Margins Chances of Blockage of Money Huge staff require and proper Management Strong Distribution network Require


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