Marketing strategy in FMCG

Artificial Intelligence (AI) is one of the hottest technologies of today and it's impacting several industries in major ways and the Fast-Moving-Consumer-Goods (FMCG) is one of them. Defined as technology that "ena-bles a digital computer system to perform tasks commonly associated with intelligent beings (humans)" 1 such as visual perception, speech recognition, decision-making and translation between languages.
Successful application of it can result in improving quality and efficiency of business functions, consumer experiences and ultimately increase revenue. AI is an umbrella term for many types of technologies. Some of the most significant successes so far include virtual agents/ assistants, predictive analytics, voice recognition & response solutions, machine learning platforms, decision management and AI-optimised hardware. FMCG brands which can develop and implement a strategy to take advantage of this trend will be in a powerful position as the technology develops. According to Constellation Research, the artificial intelligence market will surpass $40 billion in 2020 and 100 billion in 2025 3. With this determined growth, this is not a trend which can be overlooked. Moreover, Gartner has predicted that 30% of our interactions with technology today (by 2018) will involve conversations with smart machines 4. Addressing this opportunity , this paper proposes how the FMCG industry can utilise this trend to transform the customer experience at an unprecedented rate. Industry Innovations The consumption of goods has evolved greatly over the years thanks to disruptive business offerings and technologies , resulting in a power shift in favour of the consumers. This has created the necessity for corporations to invest in providing relevant, personalised, transparent and valuable brand experiences both online and offline, to convert customers and win their loyalty. This transformation has been highly significant for the FMCG industry, with forward-thinking brands starting to experiment with AI technologies. In a recent survey, Demandbase found that 80 percent of marketing executives believe AI will revolutionize marketing as soon as 2020 .

Encompassing the eight factors of price, quality, availability, product variety, packaging, brand awareness, brand name/value and health consciousness that would influence buyer preference for consumer product brands as per the past literature, the present study primarily aims at examining the influence of these factors on buyers' preference for Patanjali brand products in the Kathmandu Valley. Based on a quantitative research design, the study collected primary data through a questionnaire survey administered on 200 respondents chosen through a convenient sampling technique. Using descriptive statistics, mean-based ranks and one sample t-test, the study discovered that price, quality and health consciousness are most influential in shaping Nepali buyers preference for Patanjali brand products. The study should assume relevance in marketing research as well as other business research works, as more buyers now-a-days opt for herbal and health-conscious products in the realm of fast moving consumer goods (FMCGs).

Fast-moving consumer goods (FMCGs) comprise products that are bought frequently at a low cost in sectors such as food, health care, beauty and grooming. The single-use nature of most FMCGs means that they are thrown away regularly and sent to landfill or incinerated. Circular practices offer an opportunity to combat these outcomes. Whilst traditional recycling schemes are offered at scale, reuse is being recognised as a practice to further increase the utility of materials. To operate successfully, consumers are expected to perform both recycling and reuse behaviours in ever more complex and fluid ways. However, the literature disproportionately focuses on recycling over reuse, often discusses the two concepts separately, and does not adequately address the unique behaviours related to FMCGs. Therefore, a more nuanced understanding of the literature and a thorough break down of recycling and reuse behaviours is needed. This integrative review was conducted in two-stages. First, an online search identified eight different model categories of recycling and reuse offered for FMCGs, and each were defined by key enabling behaviours. Second, a literature search was conducted and selected papers were allocated to the categories of a new framework, synthesising the literature on recycling and reuse. The framework confirms the predominance of recycling in the literature and identifies three transformations that are taking place: (1) reuse of durable FMCGs is integrating service-based offerings, (2) reuse is taking on the features of recycling, and (3) recycling schemes are diversifying. Further research is needed to create deeper understanding of each of the recycling and reuse models.

After the depletion of their consumable components, Fast-Moving Consumer Goods (FMCGs) become obsolete. In an attempt to close the loop of resources (i.e. products, components or materials) FMCGs can be designed with revalorisation services. In these product-service systems (PSSs) consumers are assigned a key role in closing the loops of resource flows. To understand and define this role, we dissected eighteen examples of PSSs. From this analysis, four dimensions emerged that characterise distinct aspects of the PSSs: the form of obsolescence; the change of resources from obsolete to operative or recoverable; the prerequisite activities required of consumers for revalorisation; and the facilitators of activities (i.e. investments and incentives). These dimensions were used to model four data-driven archetypical roles of consumers named after the interaction between consumers and the resource in the obsolete state, namely keep, bring, consign or abandon obsolete components. The research concluded that revalorisation always takes place in designated locations. The roles that consumers fulfil in closed-loop PSSs involve carrying out activities to position resources in such locations. The roles always come at a cost, but PSSs can be designed to reduce it. PSSs can also be designed to induce a perceivable value of obsolete resources, which can be used to increase role fulfilment. This research presents a comprehensive understanding of the roles of consumers in the specific context of closed-loop FMCGs, identifies tactics to increase the fulfilment of these roles and suggests further research on behaviours and PSSs to understand the roles of other stakeholders in various type of PSSs.

The objective of this article is to analyse the marketing practice of Hungarian companies. On the one hand, the role of marketing function in the company has been revealed, and on the other hand the relationship between marketing efforts and market performance has been investigated. In frame of the Hungarian Competitiveness Studies, 300 marketing executives were
surveyed to rate the marketing practice of their companies, concentrating on branding, pricing policy, applied marketing channels and promotional activities. The results confirm that sophisticated marketing practice leads to higher business performance.