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The consumer goods industry is considered one of the most flourishing and appealing industries in terms of customer response and business expansion. Therefore it is essential to propose a suitable business concept before investing money in the execution of the business. In order to start a business in the consumer goods industry, it is essential to maintain the sustainability of the products along with maintaining a decent range of product folio for the effective execution of the business. Apart from that in order to execute sustainable growth for the business, it is essential to maintain the Customer's Social Responsibilities for the betterment of the social and economical health of the society. This will support in maintaining the reputation of the brand along with providing maximum opportunities to enhance the lifestyle of the people who were living in the society. In order to, make the business concept sustainable, the choice of effective strategies for the execution of the business without harming the sustainability of the environment. Due to the higher range of consumption of FMCG products by the consumers, the industry tends to be highly competitive with the emergence of several giants on the top line.
Market Research
According to Rizos et al. (2019), consumer goods are considered to be those which are manufactured for the use of individual people and are typically sold through outlets and retail stores. This includes several categories of the products such as processed food and beverages cosmetics, household products that are used for cleaning along with the electronic goods, and appliances and toiletries also. All these products come under the one roof of consumer goods however they are further classified into two essential categories according to the span of their storage time. Durable goods are considered to be those goods that can be stored or kept for more than one or more years whereas non-durable goods or FMCG products are considered to be products that consist of processed foods and beverages, cosmetics, and toiletries, household cleaning products, and so on.
On the other hand, Bessière et al.(2019) has mentioned that FMCG products are considered to have a shorter shelf-life and tend to deteriorate in a rapid manner; whereas durable products are mainly considered the products that include electronic appliances, kitchen appliances, leisure appliances and so on. This durable kind of goods are further considered to have a longer value of utilization as compared to the FMCG products and also due to this consumers require less repetition of the purchase of this durable kind of goods.
According to Tassell and Aurisicchio (2020), the consumer goods industry is typically connected with several other industries including the manufacturing and the technology industries also. Apart from that in order to maintain the survival and the expansion process of the consumer goods industry, the advertisement industry is considered to be highly supportive. Along with the help of various media options and advertisement techniques, the consumer goods industry tends to appeal to a maximum number of customers as compared to others.
Besides that Jacobs and Mafini (2019) have stated that the companies that deal in consumer goods tend to give tough competition to their rivals. These organizations basically intend to capture the maximum share of the market in order to maintain and enhance the value of their brands. Hence the process of brand building along with the methods of product branding is done on a serious note in these consumer goods industries. Apart from that many of these companies tend to merge with several other companies in order to maintain the wide portfolio of the products under their brand name.
According to Imansyah and Mustafa (2021) presently, the consumer goods industry is considered to be the favorite for the economy of maximum nations as the expansion of these industries has typically resulted in the growth of the nation's economy along with providing opportunities for other industries to grow at a rapid rate. Through the use of effective strategies the industries that deal with consumer goods convents their business on several levels in order to expand their wings in a succession with the faster moving of time along with maintaining different corporate social responsibilities that helps the economic growth at a faster rate.
According to Andoko and Winson (2021), the research about the market in the consumer goods industry is considered the process that helps in the evaluation of the feasibility of the new entrants in the industry through monitoring the data that is related to the economic growth of the nation. This can be done by using different techniques such as deploying the action of the surveys, interacting with several groups of people, and conducting interviews also. This evaluation of the research matrices supports the new entrants to understand the phases of the emerging market in terms of the managers get the building reaction to a particular product or service. This also helps to estimate the constant action of the customers along with providing further commencement for the using the identified data to concept marketing as well as the techniques of advertising for the determination of the change of requirements among the consumers.
Besides that, Subramanian et al. (2019) has stated that the consumer goods industries face different kinds of pressure that are related to the movement of the nation's economy. The demand for consumer goods tends to increase with the consecutive growth of the economy and therefore there will be a huge demand for the product with the higher-ends. However, the demand for the increased value of the products increases along with the shrinkage of the rate of the customer demands also.
On the other hand, Febriana (2019) has projected that a large number of companies that deal with consumer goods rely on the various techniques of advertising and differentiation of the brands. The performance of the organization that is dealing with consumer goods basically depends on the responses of the customers towards the brands. Therefore it is essential to develop advanced flavors, designs, and marketing techniques for the products of the consumer goods organization for maintaining competitiveness.
According to Meyer et al. (2019), the sector of consumer goods consists of a diverse array of different types of industries. Therefore the conditional reach depends on the function and stability of the market in order to motivate the direction of the customer. The attending place of significant challenges conducts the challenges on the basic configuration and need as well. The action that is put forward on the phases to conduct the section of work can be given through the business preference. The benefit figure of the business defends the reaching quality and chances to achieve the proper quality of goods. Along with marketing and advertising the products, brand differentiation also is considered to play a vital role in the maintenance of the business execution among the other competitors of the consumer goods industry.
In the decision-making process for the establishment of the consumer goods industry SWOT analysis can be used in order to understand the critical aspects that drive the execution of the business.
Through the analysis of the strengths, weaknesses, opportunities, and threats of the consumer goods industry it is easier to understand the factors that drive the execution of the business for the new entrants in the consumer goods industry.
In order to establish an efficient business, several techniques can be used in order to maintain the existence of the other competitors in the existing market (Wijaya 2021). The are several strategies that can support the organization to remain competitive by enhancing the effectiveness of the business execution process.
This is considered to be the most used universal strategy for developing a business. This strategy of networking is typically based on the theoretical aspect of building strong relationships through face-to-face networking (Suriawinata and Nurmalita 2022). Moreover, for the development of the new business, it is important to have good networking with the target audience.
Referrals are considered to be the mechanism that interconnects the networking technique with the clients and later turns the whole procedure into business execution. A strong relation-building technique can support the organization by offering various business opportunities. Referrals are mainly based on the services that are provided to the clients (Savitri and Andam 2020). However, these referrals do not have the exact knowledge about the range of products and services and hence they do not match up with the capabilities of the organization.
It has been surveyed that the traditional kind of advertising techniques is not capable of providing faster growth to the organization. Hence there is always a requirement of using advanced king of techniques for advertising purposes (Pontoh and Punu 2018). Use of the digital technologies for the advertisement of the products can help the organization in making the advertisement process cost-effective along with providing more advances for the business execution.
It is considered to be essential to have proper knowledge about the strategies that are going to be implemented for the effective execution of the business. This strategy has been derived from the theory that the strength of one strategy can reduce the weakness of other strategies (Kahfi 2022). However, during the implementation of these strategies, it is important to monitor that bot the strategies are implemented n the proper way. Otherwise, there will be no advantages from the implementation of the strategies will be gained and the cost of the implementation of the strategies might get wasted.
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Arisman, A. and Fuadah, L.L., 2022. Determinants Factor Influences on Accounting Conservatism at Consumer Goods Industry Companies in Indonesia (Similarity 10).
Bessière, D., Charnley, F., Tiwari, A. and Moreno, M.A., 2019. A vision of re-distributed manufacturing for the UK’s consumer goods industry. Production Planning & Control, 30(7), pp.555-567.
Febriana, F., 2019. Pengaruh Dividen Payout Ratio, Return On Asset dan Debt to Equity Ratio Terhadap Nilai Perusahaan (Pada Perusahaan Sektor Consumer Goods Industry yang terdaftar di Bursa Efek Indonesia Tahun 2012-2016). Jurnal Ekonomi Vokasi, 2(1), pp.44-60.
Imansyah, S. and Mustafa, M.H., 2021. The Analysis Of Financial Ratios Effect On The Stock Price Of Consumer Goods Sector Companies Listed In Kompas100 Index. Dinasti International Journal of Digital Business Management, 2(2), pp.371-384.
Jacobs, E. and Mafini, C., 2019. Transactional leadership, supply chain quality and business performance in the fast-moving consumer goods industry. Journal of Transport and Supply Chain Management, 13(1), pp.1-13.
Kahfi, F., 2022. Analysis of the Effect of Working Capital Efficiency, Liquidity, and Solvency on Profitability in Manufacturing Companies in the Consumer Goods Industry Sector on the Indonesia Stock Exchange. Journal La Bisecoman, 3(1), pp.1-11.
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