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Business Development Report on Fast-Moving Consumer Goods

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Executive Summary
Business organisations aim to grow in sales and remain competitive in the current
market environment that is highly dynamic and crowded. Therefore success requires the
implementation of effective marketing strategies and proper market segmentation. The Fast
Mover Consumer Goods Company in this case is experiencing a drop in performance since it
is offering its products at prices higher than those of its competitors. The company also lacks
proper market segmentation which makes makes it challenging to reach the right audience.
Offering a wide range of products with too many extensions makes it challenging for the
company to manage the brands which leads to poor sales and profitability. The lack of proper
managerial skills and marketing techniques is harmful to the firm's success and
competitiveness. In the current economy, businesses are encountering challenging market
conditions that require managers to address complex issues. To solve these challenges,
companies must implement serious organizational, cultural and functional changes. The
problems arise from companies needing to grow in a saturated market with few customers,
less space and high pressure from competition. For FMCG companies to succeed and remain
competitive, they must implement measures to increase profitability through efficient
managerial strategies and segmentation of customers. These companies must also search and
strengthen their consumer base through efficient sales promotional strategies. In this case,
high prices are causing the company to experience a drop in sales which affects its growth
and competitiveness. Therefore to overcome these challenge the company collaborate with
suppliers to obtain goods at lower costs. The strategies will enable the company to provide its
products at competitive prices and attract more consumers. The FMCG goods company
should reduce its product offerings to improve its brand management practices and ensure
each brand remains profitable. The companies should also improve their relationships with
consumers to understand their needs and purchasing patterns. Understanding customers will
help the company perform proper customer segmentation and ensure the sales promotional
messages reach the right audience. Proper consumer segmentation will increase the firm's
sales and profitability which will eventually lead to its growth and competitiveness.
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Business Development Report

The Analysis
Business aspects which entail starting the company, identification of locations, and
business models and mobilising resources to achieve the desired outcomes are of critical
importance in business management. Therefore, the analysis of the company’s issues can
occur by observing the external and internal factors that affect managerial decisions. A good
company analysis must provide problems facing the organisation possible solutions to the
issues and sufficient information that includes possible options that managers can use to solve
the issues and enhance the success of the business (Aithal, 2017). This analysis will focus on
a fast-moving consumer goods (FMCG) company that is facing various operational issues
and requires improvements to enhance its success and competitiveness. The FMCG sector is
characterised by rapidly changing consumer needs, inventories, and stiff competition.
Therefore, the success of these firms requires a thorough understanding of the company’s
abilities that can provide them with a competitive advantage in the market.
To identify the company’s infrastructure and determine an effective corporate strategy
the company can use to facilitate success I will use Porter’s five forces model. Porter's five
models are an analytical tool that helps managers understand how to establish and maintain
certain levels of profitability. The Porter Five model is a critical tool that is used to identify
various powers of a specific business situation through the use of outside-in perspectives
(Bruijl, 2018). In this case, the tool will play an essential role in the identification of the
microenvironment that drives the rivalry and hinders the firm's capability to generate more
profits. The FMCG market is a good area for investments but on the other hand, it faces
issues that hinder its survival Porter’s five Forces is a road map that can provide critical
insights that can help the firm to revive and continue generating more profits.
In the contemporary business world, there is high competition in the fast-moving
consumer goods. the existing companies in the sector are trying hard to maintain the
monopoly by ensuring that businesses intending to enter the market do not survive.
Businesses that enter the competitive market find it hard to stay in operation and the majority
rarely go beyond the second year. Studies show that existing businesses devise approaches
that offer them opportunities to remain in their high sales position in order to raise their
market share and profitability (Islami et al., 2019). In this case, the FMCG Company in the
case has multiple brands with various brand extensions. The scenario limits the entrants of
the new players in the market since the new entrants do not have the financial resources to
produce multiple brands to compete with such established firms. Therefore, the threat of new
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entrants, in this case, is very low and the FMCG firm has a competitive advantage in the
market since no other firms will flood the market.
The success of any organisation relies on the availability of raw materials. Therefore,
companies need to have reliable suppliers that will ensure there will be no shortage or delay
of raw materials required for the production of goods. The supply chain process is determined
by the final results and it relies on the agreement between the two parties involved. In most
cases, the bargaining power of suppliers is influenced by multiple factors such as the
importance of the resources required, the availability of substitutes and the volume needed
(Prasad et al., 2019). The FMCG Company has multiple brands with different dimensions
which makes it have moderate bargaining power. The scenario is because the large product
line makes it to have many suppliers which may minimise the suppliers' bargaining power.
Suppliers will prefer to sell the raw materials to companies with large product lines since they
will incur more profits. Therefore, the issue worked to the advantage of the firm since they
will have bargaining power towards suppliers.
Buyers have a huge influence on the prices of goods and services in the market and
can force organisations to lower the prices depending on the situation in the market. The
activities and management of the company have a huge influence on how the buyers
determine the prices of goods and services. The bargaining powers of buyers are the practices
that buyers or retailers can apply to force firms to lower prices. Based on the FMCG
Company, the bargaining powers of buyers are high since the firm has below-the-line
activities since the firm does not have proper marketing activities that are specifically
directed to the customers. Due to this issue, the buyers will have more bargaining power
since they can seek other firms that have better promotional services. Poor management
offers the buyer’s higher bargaining power since the firms lack approaches that can influence
the pricing and promotions of their products.
The availability of substitutes in the market has a negative impact on the firm's
profitability and growth since it reduces the market share. When a company have a challenge
of multiple substitutes the sales and revenues will be reduced since customers will prefer
substitutes if they solve their problems and are cheap. In addition, the availability of
substitutes raises competition in the industry and retaining customers becomes a challenge to
the firms. Based on the FMCG firm, the company have multiple substitutes which poses a
huge challenge to firm performance. Despite the firm having various brands, the FMCG
market is susceptible to multiple substitutes since the majority offers similar products. These
substitutes may force the company to reduce its prices to retain existing customers as well as
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attracting new customers. Building brand loyalty and enhancing their marketing approaches
can reduce the threat of substitutes.
In the contemporary business world, competition is inevitable and companies are
required to devise approaches to help them remain unique in service delivery and production.
The company will have less power if there are multiple competitors and the number of firms
producing similar products is many. The suppliers and the buyers will prefer competitors if
they will be able to deliver products at high profits and get products at lower prices
respectively. Based on the information provided, the FMCG firm has a high competition
rivalry since the firm is reducing its market share due to high prices of goods and they are not
aggressive in fighting the competition. The firm is experiencing price pressures and their
managerial approaches also raise the rivalry in the market. The firm needs to redefine its
target market and segmentation to ensure it reaches its market share which will help in the
reduction of competition.
The Action Plan
Every business organisation aims to succeed and grow in the current competitive
environment. Therefore, the management must set clear goals and identify the strategies that
will help the company achieve its goals and objectives. Drafting a marketing plan is an
essential process since it enhances the understanding of the company’s market opportunities,
challenges and competitive advantage. Through the use of a marketing plan, managers can
plan their available resources carefully, set priorities, and coordinate activities in the firm.
The FMGC Company in this case is experiencing challenges that are causing it to have poor
performance due to poor pricing strategies, managerial issues, and a lack of proper market
segmentation. Creating a marketing plan for the company will help it improve its marketing
strategies and the efficiency of its operations. A developed marketing plan will outline such
as goals, target market, competitive analysis, marketing strategies and performance
evaluation that will help the FMCG firm to enhance its marketing strategies and remain
competitive in the market.
Setting Goals- 1 month
Setting goals is a critical step since it helps the managers to understand what the
company want to achieve and tailor all activities and resources towards attaining the specified
objectives. In this case, the company’s goals are:
 Increase sales by setting competitive pricing strategies.
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 To increase brand awareness through proper marketing campaigns and segmented

promotional approaches.
 Improving the below-the-line activities to ensure the promotional campaigns reach
consumers of varying demographics.
 Improve the marketing positioning by understanding consumer needs and trends
Situation Analysis-2 months
The situation analysis portrays the internal and external factors that influence the
performance of the company. In this case, FMCG is struggling to succeed due to various
performance gaps. Although the company utilises social media marketing effectively it has
poor marketing segmentation and targeting. The company’s prices are high compared to its
competitors which affects its sales since many buyers opt for cheaper products. Therefore,
performing a situation analysis will help the company identify its weaknesses and strengths
and implement strategies to remain competitive in the market.
Target Market
Identifying the target market starts by understanding the product offering and what
sets it apart from the competitor. Therefore, to determine the right market for FMCG,
managers should understand consumer trends, behaviours, and demographics. Market
segmentation critical aspect of marketing since it entails the partition of the target audience
into distinct segments then the evaluation and advertisement are selected depending on the
group (Aghdaie & Alimardani, 2015). The company have multiple brands with many
extensions but does not have proper customer segmentation. The issue is affecting the
company's ability to ensure the promotional strategies conform to the right audience which
adversely affects its sales and profitability. In this case, the FMCG Company should
comprehend its target market and categorise the buyers depending on the demographics,
purchasing power, demand, and location. The step will help the company implement effective
promotional strategies and distribution channels depending on consumer segments. Ensuring
the correct audience receives the promotional information or campaign that matches their
needs will not only help the company improve their sales but also help it to remain
competitive in the heavily crowded market.
Competitive Analysis
Competition is an inevitable force in the contemporary business world and it calls the
companies' initiatives to ensure they remain relevant in the market. Regardless of the size of
the company, competitors must be there and the strategies these rivals apply have a huge
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influence on the company’s performance. Competitor analysis is critical because it helps the
organisation to identify the weaknesses, strengths, opportunities and threats it experiences in
the business environment (Adom et al., 2016). The FMCG firm is producing similar products
to other organisations and it has other competitors who are offering substitute products which
in return reduces the market share of the company. The firm should devise approaches that
will ensure it remains relevant and retain its market share. The firm is selling its products at
relatively higher prices compared to the competitors in the field which is causing them to lose
clients. Therefore, the firm needs to implement a competitive pricing strategy that will entail
a temporal reduction of prices and also incorporate target promotions to increase market
share.
Marketing Strategies
Marketing is a critical component of a business since it facilitates the attainment of
revenue generation goals. Therefore, companies must implement effective marketing
strategies and tailor resources to achieve their objectives and remain competitive. With the
advent of social media use, many organisations have embraced the opportunity by utilising
social media platforms such as Facebook, TikTok, and Instagram in their marketing
campaigns. The FMCG Company in this case utilises social media marketing and other
advertising channels such as mass media and magazines. However, to enhance the
effectiveness of social media marketing, the company must increase its online presence, and
utilise data analytics to implement changes depending on consumers' preferences
demographics and demands. Studies show that data analytics is a critical aspect of
organisation since it helps in marketing decision-making and maintaining competitiveness in
the business environment (Abashidze, 2021). The approach will help to ensure that the
promotional message is delivered to the correct audience at the right time. Proper
coordination and an effective marketing strategy will enable the company to improve its sales
and remain competitive in the FMCG environment.
Evaluation
The aim of incorporating change in the marketing approach is to increase the
performance of the overall organisation. In this case, the FMCG has been having issues with
prices and their marketing approaches have not been bearing fruits. Therefore, the assessment
of the approaches is implemented through various key performance indicators. First, the
increase in the online following, likes, and shares on various platforms will be a critical
indicator that the marketing approaches have played a significant role in increasing brand
awareness. Studies indicate that organisation self-promotion is critical in raising the number
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of social network followers which helps in improving brand awareness (Siraj et al., 2023). In
addition, the rise in the number of sales and profitability in the first few months of new
marketing approaches will be an indication that the company is moving on the right track.
Positive customer reviews and comments from social media platforms and customer retention
will play an essential role in gauging organisational performance.
Approaches to Enhance Performance
Building Better Relationships with Customers
Marketing is a critical approach in business that helps in attracting customers to
purchase the company’s goods and services. Before marketing it is critical for companies to
devise strategies to ensure that there is a better relationship with consumers since a better
relationship has a positive impact on the performance. Therefore, the FMCG company need
to ensure it has a better relationship with the consumers to facilitate growth. Marketers need
to find ways in which they will develop associations with customers through interaction and
dialogue during their exchange. The association is essential since it will contribute to an
environment where there will be coexistence and their conflict resolution mechanism are laid
properly. Studies show that a desired customer and company relationship is one where there
is a mutual benefit between the two whereby the value and profits are shared among the two
parties (Rawal & Upadhayay, 2017). Responding to customers' grievances in their stores and
on their social media platforms is another approach that can help the firm build better
relationships with customers., the approach is critical since these customers will return to
make more purchases and they will act as ambassadors by spreading the word of the mouth.
In addition, ensuring there is a better-laid customer relationship management (CRM)
framework will enable the firm to ensure each department in the firm ensures better
relationships. Studies show that a better CRM helps the firm to profitably deliver value and
helps provide more value with minimal costs (Dalili & Beheshtifar, 2018). Therefore, the
firms should ensure that they maintain better relationships with customers to ensure
continuous growth and profitability.
Another strategy the company can apply to solve the underlying issues is to ensure it
lowers its prices to increase sales and profitability. Pricing is a critical aspect of business
since it determines the amount of sales and determines the profits the firm garners. The
company is experiencing high competition since the rivals are selling their products at lower
prices and there are multiple substitutes in the market. Therefore, a reduction in prices will
undercut the competitors and the firm will attract customers who are price sensitive which
will help in stimulating impulsive sales. Studies show that determining the prices of goods is
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a critical strategic approach since it impacts the magnitude at which the customers perceive
products and resultantly they will make a subsequent sale if the prices are favourable
(Hyginus et al., 2019). Despite the company’s having better promotional and distribution
mechanism, prices have a significant role in driving sales. However, the company needs to
ensure that its pricing approach does not lead to loss. Therefore, finding suppliers who will
provide the consumer goods at a lower price will play an essential role in the firm’s effort
while reducing the prices. The issue of low pricing requires a proper approach and the
company need to devise strategies that will ensure it does not make losses. Offering discounts
that are value-based will help customers identify the benefits of the product and they will be
motivated to make a purchase. Although pricing is a major aspect in driving sales, the
company need to have an attractive brand that will match the needs and preferences of the
customers.
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